Dept. of Accounting
College of Business
Al Azhar University-Gaza
بسم الله الرحمن الرحيم
Final Exam:
Government Accounting
Spring 2009
Instructor:
Emad AbuShaaban
Time: 2hrs.
Answer The Following Problems:
Problem (1)
Assume that you are a loan officer of a bank. A local church is seeking a $4 million, twenty-year loan to construct a new classroom building.
Church officers submit a comprehensive financial report that was audited by a reputable CPA firm. In summary form (the actual statement showed details), the church's statement of revenues and expenditures indicated the following (in million):
The church prepared its financial statements on a near-cash basis, accounting for all capital asset acquisitions as expenditures when acquired.
The church's balance sheet reported assets, mainly cash and investments (at market value), of $0.2 million.
In addition, a note to financial statements indicated that the current market value of its present buildings and equipment is approximately $3 million. The church has no outstanding debt.
Required:
Problem (2)
The Sherill Utility District was recently established. Its balance sheet, after one year, is presented below. Note the following additional information:
- The general fund received all of its revenue, $150 million, from tax. It had operating expenditures, excluding transfers to other funds, of $100 million.
- The general fund transferred $20 million to the debt service fund. Of this, $15 million was to repay the principal on bonds outstanding; $5 million was for interest.
- The district issued $130 million in bonds to finance construction of a plant and equipment. Of this, it expended $40 million.
Required:
Problem (3)
Wickliffe County authorized the issuance of bonds and contracted with the USA Construction Company (UCC) to build a new sports complex. During 2007, 2008, and 2009 the county engaged in the transactions that follow. All were recorded in a capital projects fund.
Required:
Problem (4)
The boyd School District began a recent fiscal year with $3,000 of supplies in stock. During its fiscal year, it engaged in the following transactions relating to supplies:
- It purchases supplies at a cost of $22,000.
- It paid for $19,000 of the supplies.
- It used $20,000 of the supplies and therefore had $5,000 in supplies inventory at year end.
The district establishes inventory reserves as appropriate.
Required:
Good Luck