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1. Three new copiers were purchased for use by the city clerk’s office using General Fund resources. The copiers cost $14,400 each; the city’s capitalization threshold is $4,400. Which of the following entries would be required to completely record this transaction?

 

	General Journal	Debits		Credits
a.	General Fund
	Expenditures	43,200
	Vouchers Payable			43,200
b.	Governmental Activities
	Expenses	43,200
	Vouchers Payable			43,200
c.	General Fund
	Expenditures	43,200
	Vouchers Payable			43,200
	Governmental Activities
	Equipment	43,200
	Vouchers Payable			43,200
d.	General Fund
	Expenditures	43,200
	Vouchers Payable			43,200
	Governmental Activities
	Expenses	43,200
	Vouchers Payable			43,200

2. The following balances are included in the subsidiary records of Sinclair:
 

Town hall building	$	4,400,000
Town pool (supported by user fees)		1,400,000
Town pool maintenance equipment		19,000
Police cars		140,000
Equipment		69,000
Office supplies		11,000

 

What is the total amount of general capital assets held by the town?

3. Under GASB standards, which of the following would be considered an example of an intangible asset?

4. Maxim County just completed construction of a new town hall to be used for its government offices. The employees have moved in and the new building is officially in use. The county used a capital projects fund to account for the construction of the building, and the building came in under budget. There is a fund balance of $12,000. The county should:

5. A capital projects fund would probably not be used for which of the following assets?

6. Machinery and equipment depreciation expense for general capital assets totaled $163,000 for the reporting period. Which of the following correctly defines the recording of depreciation for general capital assets?

7. The year-end pre-closing trial balance for the Chance County Woodland Park Capital Projects Fund is provided below.
 

		Debits			Credits
Cash	$	779,000
Grant Receivables		520,000
Investments		1,000,000
Contract Payable				$	1,059,500
Contract Payable – Retained Percentage					62,500
Encumbrances Outstanding					1,425,000
Revenues					627,000
Encumbrances		1,425,000
Construction Expenditures		3,750,000
Other Financing Sources – Proceeds of Bonds					4,300,000
	$	7,474,000		$	7,474,000

Required

1. Prepare the year-end statement of revenues, expenditures, and changes in fund balances for the capital projects fund.

 

b. Has the capital project been completed?