THE BASICS OF FUND ACCOUNTING
Presented by:
Darla Erickson
Local Government Services Bureau
State Accounting Division, Department of Administration
1
THE BASICS OF FUND ACCOUNTING
Topics covered in this presentation:
• Overview of Governmental Accounting Basics
Overview of Governmental Accounting Basics
• Principles
• Fundamentals of Debits and Credits
• Fund Accounting/Basis of Accounting
• Using the BARS Chart of Accounts
• Funds
• Accounts
• Objects
2
1
THE BASICS OF FUND ACCOUNTING
SOME OF THE ACRONYMS COMMON TO GOVERNMENTAL ACCOUNTING
TO GOVERNMENTAL ACCOUNTING
CAFR
Comprehensive Annual Financial Report
GASB
Governmental Accounting Standards Board
GAAFR
Governmental Accounting, Auditing,
and Financial Reporting
GAAP
Generally Accepted Accounting Principles
3
THE BASICS OF FUND ACCOUNTING
• PRINCIPLES OF GOVERNMENTAL ACCOUNTING
•
Accounting and Reporting Capabilities
•
•
•
Chart of Accounts: http://doa.mt.gov/lgsb/Forms/AccountingSystemsProgram/1_AccountingM
anuals/01_BARSChartofAccount
•
Updates: http://doa.mt.gov/lgsb/bars_memos
Fund Accounting Systems
•
•
Accounting systems should be maintained in accordance with generally accepted accounting principles (GAAP) and uniform in MT by using the BARS Chart of Accounts as prescribed by the Local Government Services Bureau
Accounting systems should be organized and operated on a fund basis
Fund Types
• Fund financial statements should report governmental, proprietary
and fiduciary fund types if applicable
•
Number of Funds
• Only maintain those funds required by law and sound financial management
4
2
THE BASICS OF FUND ACCOUNTING
• PRINCIPLES OF GOVERNMENTAL ACCOUNTING
•
Special Revenue Funds (*recent change)
p
(
g )
• Special Revenue Funds must meet the new definition of a special revenue fund according to GASB54:
• Used to account for proceeds of specific revenue sources that are committed or restricted to expenditures for specific purposes other than debt service or capital projects.
– Balances will be » Non‐spendable » Restricted » Committed » Assigned (but not only assigned fund balance)
» Negative Unassigned Fund Balance
*Existing funds that do not meet this fund balance type will report their balance in the General Fund at year‐end for reporting purposes. *Or Commit Revenues or Fund Balance to a major purpose by year‐end by taking the highest action of local government by year‐end.
5
THE BASICS OF FUND ACCOUNTING
• PRINCIPLES OF GOVERNMENTAL ACCOUNTING
•
Reporting Capital Assets
p
g p
• A clear distinction should be made between general capital assets and those of the proprietary and fiduciary funds.
• Capital Assets are different than an asset inventory listing
– Threshold Policy should be determined by cost and useful life
•
Valuation of Capital Assets
• Assets should be reported at historic cost – Donated assets at the estimated fair market value at the time of acquisition
• Depreciation of Capital Assets
• Capital assets should be depreciated over their estimated useful lives
– Use your entity’s historical information to determine the useful life – the life will vary according to use of the asset 6
3
THE BASICS OF FUND ACCOUNTING
• PRINCIPLES OF GOVERNMENTAL ACCOUNTING
• Reporting Long‐term Liabilities
Reporting Long‐term Liabilities
• A clear distinction should be made between business‐type long‐term liabilities and general long‐term liabilities
• Measurement Focus/Basis of Accounting in the BFS
• The basic financial statements should display the government‐wide financial statements (full accrual) and the fund financial statements (modified accrual)
7
THE BASICS OF FUND ACCOUNTING
• PRINCIPLES OF GOVERNMENTAL ACCOUNTING
• Budgeting, Budgetary Control/Reporting
• Budgets should be adopted, controlled through monitoring and comparison statements included in reporting.
• The budgetary statements should present original budget, final budget, actual amounts and a comparison with actual to final
– Date change: Approved budget due to County by the later of 30 days after receipt of the certified taxable valuation or first Thursday in Sept – Due to LGSB 60 days after receipt of the certified taxable valuation or Oct 1
– Local Budget Act: 7‐6‐40 MCA
• Transfer, Revenue, Expenditure/Expense Classifications
• Revenues should be maintained by fund, major source and other financing sources • Expenditures of governmental funds by fund, function/activity and other financing uses (transfers, etc)
• Expenses of proprietary funds by fund/activity/object 8
4
THE BASICS OF FUND ACCOUNTING
• PRINCIPLES OF GOVERNMENTAL ACCOUNTING
• Common Terminology and Classification
gy
f
• A common terminology and classification should be used consistently throughout the accounting software, budget, and financial report of each fund
• Annual Financial Reports
• Preparation of financial reports for the benefit of management should be prepared • An Annual Financial Report should be prepared and made available An Annual Financial Report should be prepared and made available
to the public and the Local Government Services Bureau • Due to LGSB by Dec 31 9
THE BASICS OF FUND ACCOUNTING
• Financial Statements:
• Balance Sheet (Governmental Funds) or Statement of Net Assets (Enterprise Funds)
Consists of:
• Assets – debit balance
Liabilities – credit balance
• Liabilities • Fund Balance (Governmental Funds) or Net Assets(Enterprise Funds)
Fund Balance/Net Assets = Assets – Liabilities
Or Assets – Liabilities = Fund Bal/Net Assets 10
5
THE BASICS OF FUND ACCOUNTING
Assets
• Have a Debit Balance
• If an asset has a credit balance – the account has a “negative” balance
• This is not normal
hi i
l
11
THE BASICS OF FUND ACCOUNTING
 To increase an asset account you
debit the account
To decrease an asset account
you credit the account
12
6
THE BASICS OF FUND ACCOUNTING
Liabilities
• Have a Credit Balance
• If a liability has a debit balance –
the account has a “negative” balance
• This is not normal
13
THE BASICS OF FUND ACCOUNTING
 To increase a liability account
you credit the account
To decrease a liability account
you debit the account
14
7
THE BASICS OF FUND ACCOUNTING
Fund Balance/Net Assets has a credit balance
If it has a debit balance that is “negative”
negative and isn’t
isn t
normal.
Entries should rarely if ever debit or credit fund bal or
net assets
 When you post a debit to an asset or
liability account fund balance/net assets will
automatically increase
When you post a credit to an asset or liability
account fund balance/net assets will
automatically decrease
15
THE BASICS OF FUND ACCOUNTING
• Financial Statements:
Statement of Revenues, Expenditures and Changes in , p
g
Fund Balances (Governmental Funds) or Statement of Revenue, Expenses and Changes in Net Assets (Enterprise Funds)
Consists of:
• Revenues – credit balance
• Expenditures/Expenses – debit balance
• Other Financing Sources (Uses) or Non‐Operating Revenue/Expense
16
8
THE BASICS OF FUND ACCOUNTING
Revenues
• Have a Credit Balance
• If a revenue has a debit balance –
the account has a “negative” balance
• This is not normal
17
THE BASICS OF FUND ACCOUNTING
 To increase a revenue account
you credit the account
To decrease a revenue account
you debit the account
18
9
THE BASICS OF FUND ACCOUNTING
Expenditures/Expenses
• Have a Debit Balance
• If an expenditure/expense account has a credit balance – the account has a “negative” balance
has a “negative” balance
• This is not normal
19
THE BASICS OF FUND ACCOUNTING
 To increase an expense/expenditure
account you debit the account
To decrease an expense/expenditure
account you credit the account
20
10
FUNDAMENTALS OF DEBITS & CREDITS
BASIC ACCOUNTING FORMULA
DR
=
CR
Example: You receive $10 for a dog license
$10
=
$10
Cash (Asset)
=
Revenue (Pet Lic)
101000
=
323030
21
FUNDAMENTALS OF DEBITS & CREDITS
BASIC ACCOUNTING
FORMULA
EXPENSES/
EXPENDITURES +
ASSETS
DR
REVENUES +
=
=
LIABILITIES + EQUITY
CR
22
11
FUNDAMENTALS OF DEBITS & CREDITS
ACCOUNTING FORMULA
EXPENSES/
ASSETS + EXPENDITURES = REVENUES + LIABILITIES + EQUITY
ASSETS = LIABILITIES + EQUITY
DR
=
CR
23
FUNDAMENTALS OF DEBITS & CREDITS
SELF-BALANCING SET OF ACCOUNTS
ACCOUNTING FORMULA
ASSETS + EXPENSE = REVENUES + LIABILITIES + EQUITY
DR
=
CR
24
12
FUNDAMENTALS OF DEBITS & CREDITS
• RECAP
Debits must equal credits
An entry made within a fund should have equal debits and credits
All debits and credits should be made to asset, liability, revenue, expenditure/expense, other financing sources/uses or restatement accounts
Rarely, if ever, should fund balance/net assets accounts be debited or credited
25
Test our knowledge
1. Assets have a normal __________ balance:
1 Credit
1.
C dit
2. Debit
2. Liabilities have a normal ______ balance:
1. Debit
2. Credit
3. Debits should equal:
1. Revenues
2. Credits
26
13
TYPES OF FUNDS
GOVERNMENTAL FUNDS
• 1000 ~ General
• 2000 ~ Special Revenue
• 3000 ~ Debt Service
• 4000 ~ Capital Projects
• 8000 ~ Permanent
27
TYPES OF FUNDS
PROPRIETARY FUNDS
• 5000 ~ Enterprise
•
6000 ~ Internal Service
28
14
TYPES OF FUNDS
FIDUCIARY FUNDS
• 7000 ~ Pension Trust
~ Investment Trust
~ Private Purpose Trusts
~ Agency
29
TYPES OF FUNDS
9000 ACCOUNT GROUPS - For Governmental Funds!
• General Capital Assets ~ 9000
• General Long-Term Debt ~ 9500
• No longer required to be reported
• Can keep updated for your records
30
15
THE BASICS OF FUND ACCOUNTING
BASIS OF ACCOUNTING
Deals with the timing and recognition of
transactions and events
When recognized:
Full Accrual Basis
Modified Accrual Basis
Cash Basis
31
THE BASICS OF FUND ACCOUNTING
BACK TO THE BASICS
Full Accrual Basis of Accounting
• Recognizes increases and decreases in economic
resources (Net Assets) as soon as the
underlying event or transaction occurs
•Revenues are recognized as soon as they are
earned
•Expenses are recognized as soon as the liability
is incurred
• Regardless of the time of related cash inflow
and outflows
32
16
THE BASICS OF FUND ACCOUNTING
BACK TO THE BASICS
Modified Accrual Basis of Accounting
•Recognizes
g
increases and decreases in financial
spendable resources only to the extent that
they reflect near-term inflows and outflows of
cash
• Amounts are recognized as revenues when earned,
only so long as they are collectible within the
period or soon enough thereafter to be used to
pay liabilities of the current period. (60 days)
• In other words, when they are available to pay
expenditures of the current period.
33
BACK TO THE BASICS
The Cash Basis of Accounting
• Is
I th
the simplest
i l t to
t achieve
hi
and
d provides
id th
the lleastt
disclosure
• Only revenues received and expenses or expenditures
disbursed are recognized
• The Balance Sheet of the Governmental Unit
displays only a balance in cash and the fund
balance accounts.
• The Operating Statement presents results of only the
cash transactions for the reporting fund.
34
17
Test our knowledge Governmental Funds are reported using
which Basis of Accounting:
1. Full Accrual Basis
2. Modified Basis
3. Cash Basis
Enterprise Funds are reported using
which Basis of Accounting:
1. Full Accrual Basis
2. Modified Basis
3. Cash Basis
35
BASIS & MEASUREMENT FOCUS
PRACTICAL DIFFERENCES:
• Receipt of long-term debt proceeds
• Repayment of the principal of long-term
debt
• Capital acquisition (outlay)
• Depreciation of capital assets
• Deferrals and amortizations
36
18
BACK TO THE BASICS
ILLUSTRATIVE ENTRIES
RECEIPT OF LONG
LONG-TERM
TERM DEBT PROCEEDS
PROCEEDS:
PROPRIETARY FUNDS:
Cash
DR
CR
$20,000
Bonds Payable
$20,000
GOVERNMENTAL FUNDS:
Cash
$20,000
Other Financing Sources
$20,000
(Proceeds of General Long-Term Debt)
37
BACK TO THE BASICS
ILLUSTRATIVE ENTRIES
REPAYMENT OF THE PRINCIPAL OF LONG-TERM DEBT:
PROPRIETARY FUNDS:
Bonds Payable
Interest Expense
DR
CR
$5,000
300
Cash
$5,300
GOVERNMENTAL FUNDS:
Expenditure- Bond Principal
Expenditure-bond Interest
Cash
$5,000
300
$5,300
38
19
BACK TO THE BASICS
ILLUSTRATIVE ENTRIES
CAPITAL ACQUISITION:
DR
CR
PROPRIETARY FUNDS:
Equipment
$20,000
Cash
$20,000
*If expense/capital outlay was used – reverse as part of closing entries
GOVERNMENTAL FUNDS:
Expenditure-capital Outlay
$20,000
Cash
$20,000
39
BACK TO THE BASICS
ILLUSTRATIVE ENTRIES
PROPRIETARY FUNDS:
Depreciation Expense
DR
CR
$2,000
Accumulated Depreciation
$2,000
GOVERNMENTAL FUNDS:
Depreciation may be Recorded in the General Capital Asset
Account Group
*****Not in the Governmental Fund Itself!
40
20
41
BARS CHART OF ACCOUNTS
• Chart of Accounts is the framework of an accounting system
• Is a uniform system for Local Governments
• Provides the information needed for administration & reporting purposes
• Allows for comparisons
ll
f
i
• Funds have of 4 digits
• Accounts have 6 digits
• Objects have 3 digits 42
21
BARS ‐ FUND CLASSIFICATIONS
1000 - General Fund
2000 - Special Revenue Funds
3000 - Debt Service Funds
4000 - Capital Projects Funds
5000 - Enterprise Funds
6000 - Internal Service Funds
7000 - Fiduciary Funds (Trust & Agency)
8000 - Permanent Funds
9000 - General Capital Asset/Long-Term Debt
43
BARS FUND CLASSIFICATION CONT.
Example of further breakdown of funds:
• 5000 – 5999 – Enterprise Funds
p
5010 – Golf
5110 – Hospital/Nursing Home
5210 – Water
5310 – Sewer
5410 – Solid Waste
5415 ‐ Landfill
5510 – Ambulance
44
22
BARS BALANCE SHEET ACCOUNTS
100000
-
Assets and Other Debits
200000
-
Liabilities, Equity and
Other Credits
Within these two groups, assets and liabilities are
f th defined
further
d fi d into
i t other
th logical
l i l categories
t
i
depending upon the nature of the particular asset
or liability.
45
BALANCE SHEET ACCOUNTS
Principal groups of asset & other debit numbers:
100000 – Cash/Investments
/
110000 – Taxes/Assessments Receivable
120000 – Other Receivables
130000 – Due from and advance from
140000 – Prepaid Expenses
150000 – Inventories
160000 – Restricted Assets
170000 – Other Debits
46
23
BALANCE SHEET ACCOUNTS
Example of further breakdown of an asset account:
t
110000 – Taxes Receivable
111000 – Mobile Home Taxes Receivable
113000 – Real Taxes Receivable
115000 – Personal Taxes Receivable
116000 – Protested Taxes Receivable
118000 – Special Assessments Receivable
47
BALANCE SHEET ACCOUNTS
Liabilities, equity & other credits numbers:
200000 –
0000 Short‐term Payables
Sh t t
P bl
210000 – Other Short‐term Payables/Due to
220000 – Deferred Credits
230000 – Long‐term Liabilities
240000 – Other credits 250000 – 270000 – Fund Balance/Net Assets
280000 – Investment in Capital Assets (Fund 9500)
48
24
BARS –– REVENUE ACCOUNTS
BARS 310000
320000
330000
340000
350000
360000
370000
380000
390000
-
Taxes
Licenses and Permits
Intergovernmental Revenues
Charges for Services
Fines and Forfeitures
Miscellaneous Revenues
Investment Earnings
Other Financing Sources
Internal Services
49
BARS –– EXPENDITURE ACCOUNTS
BARS 410000
420000
430000
440000
450000
460000
470000
480000
490000
- General Government
- Public Safety
- Public Works
- Public Health
- Social/Economic Services
- Culture and Recreation
- Housing and Community Dev.
- Conversation of Natural Resources
- Debt Service
50
25
BARS –– EXPENDITURE ACCOUNTS BARS EXPENDITURE ACCOUNTS ––
CONT.
500000
510000
520000
- Internal Services
- Miscellaneous
- Other Financing Uses
51
BARS – OBJECT
BARS –
EXPENDITURE CLASSIFICATIONS
100
200
300
400
500
600
700
800
900
- Personal Services
- Supplies
S
i
- Purchased Services
- Building Materials
- Fixed Charges (Insurance, rent)
- Debt Service
- Grants, Contributions, Indemnities
- Other Objects, Transfers, Depreciation
- Capital Outlay
52
26
BARS – OBJECT
BARS –
EXPENDITURE CLASSIFICATIONS
Example of further breakdown of object codes:
200 00 – Supplies
210 – Offices Supplies
220 – Operating Supplies
230 – Repair & Maintenance Supplies
231 – Fuel –
Fuel – Gas, Oil, Diesel
Gas Oil Diesel
232 – Motor vehicle parts
233 – Machinery & equipment parts
240 – Other Repair & Maintenance Supplies
250 – Supplies for Resale
53
BACK TO THE BASICS
BUDGETARY, ACCOUNTING AND REPORTING SYSTEM (BARS) FOR
MONTANA, CITIES, TOWNS AND COUNTIES
BARS ACCOUNT STRUCTURE
Asset & Liability Accounts - (Illustration 1)
1st Digit 1 = Assets & Other Debits
1st Digit 2 = Liabilities& Other Credits
Fund
Account
Number
Number
XXXX
XXXXXX
54
27
BACK TO THE BASICS
BARS ACCOUNT STRUCTURE
Asset & Liability Accounts - (Illustration 1)
1st Digit 1 = Assets & Other Debits
1st Digit 2 = Liabilities& Other Credits
Fund
Account
Number
Number
1000
101000
GENERAL
55
CASH
BACK TO THE BASICS
BARS ACCOUNT STRUCTURE - CONT.
Revenue Accounts - (Illustration 2)
1st Digit 3= Revenue
Organization
Fund
Program
g
X
Job
XXX
Optional
Code
Major
Code ((Department
p
) Source
1000
GENERAL
XXX
Optional
Sub-Source
Detail
31
1
010
TAXES
GENERAL
PROPERTY
TAXES
REAL
ESTATE
TAXES
56
28
BACK TO THE BASICS
BARS ACCOUNT STRUCTURE - CONT.
Expenditure Accounts - (Illustration 3)
1st Digit 4 & 5 - Expenditures
Organization
Fund
Code
Program Job
Code
(Department)
X
1000
Optional
XXX
GENERAL
XXX
Optional
Sub
Major
Function Activity Activity Object
42
01
40
PUBLIC
SAFETY
LAW
ENFORCEMENT
SERVICES
2
SUPPLIES
CRIME
CONTROL &
INVESTIGATION
SubObject
2
Detail
1
Optional
UNIFORMS
OPERATING
SUPPLIES
57
58
29
BACK TO THE BASICS
59
BACK TO THE BASICS
60
30
REVENUE QUIZ
Identify the appropriate revenue code number for the following revenue items:
Fund #
Account #
1. Accruing monthly fees for garbage collections services _____________________________
2. The receipt of real estate taxes in the general fund
_____________________________
3. The receipt of personal property taxes in general fund _____________________________
4. The receipt of money from the Montana Treasure State Endowment program for a water project
_____________________________
5. The receipt of interest on a capital projects fund _____________________________
6. The receipt of money from the state as an allocation from taxes on fuel
_____________________________
7. The receipt of a federal Community Development Block Grant _____________________________
8. The receipt of money from the City Judge for fines _____________________________
9. The receipt of proceeds from swimming pool collections______________________________
10. The receipt of fees collected by the clerk for copies ______________________________
61
EXPENDITURE QUIZ
Identify the appropriate expenditure/expense code number for the following items: Fund Account Object
1. Payment of wages to the Financial Clerk _____________________
2. The purchase of tires for a dump truck in the road and street department _____________________
3. The purchase of a garbage truck for use in collection ______________________
4. The purchase of envelopes for the City Judge ______________________
5. Payment for electricity for a building at the water plant ______________________
6. Payments for the rental of a backhoe paid for with gas tax monies
gas tax monies _____________________
7. The purchase of a riding lawn mower for the park _____________________
8. Recording the depreciation of garbage equipment _____________________
9. Payment of the employer's contribution to Police Chief’s
retirement _____________________
10. Payment for the cost of the audit of the City
_____________________
62
31
Questions…
63
Local Government Services Bureau
Website: http://doa.mt.gov/lgsb
Address: 301 S Park Ave ~ Room 340
PO B
Box 200547 ~ Helena,
H l
MT 59620-0547
59620 0547
Phone: 841-2909
64
32
Daniels
Lincoln
Glacier
Toole
Blaine
Flathead
Lake
Sherida
n
Hill
Roosevelt
Valley
Phillips
Richland
Chouteau
Teton
McCone
Cascade
Fergus
Dawson
Garfield
Judit
h
Basin
Missoula
Musselshell
Meagher
Rosebud
Fallon
Custer
Sweet
Grass
Gallati
n
Big Horn
Madison
Kalispell
Magda Nelson
(406)257-5245
mmnelson@bresnan.net
Helena
Jamie Cain
(406)841-2902
Jcain@MT.Gov
Park
Powder
River
Carter
Carbon
Billings
Darla Erickson
(406)371-5627
Derickson@MT.Gov
Circle
Tod Kasten
(406) 974-3377
Tkasten@MT.Gov
Jamie Cain
Area 1 – Helena
Phone: 841-2902
Jcain@mt.gov
Darla Erickson
Area 2 – Billings
Phone: 371-5627
derickson@mt.gov
Area 1 – Helena
Anaconda Deer Lodge
Anaconda-Deer
Beaverhead
Blaine
Broadwater
Butte-Silver Bow
Cascade
Chouteau
Gallatin
Granite
Hill
Jefferson
ff
Lewis & Clark
Madison
Meagher
Powell
Teton
Area 2 – Billings
Big Horn
Carbon
Fergus
Golden Valley
Musselshell
Park
Petroleum
Rosebud
Stillwater
Sweet Grass
Treasure
Wheatland
Yellowstone
65
66
33
Tod Kasten
Area 3 – Circle
Phone: 974-3377
TKasten@mt.gov
Area 3 – Miles City
Carter
Custer
Daniels
Dawson
Fallon
McCone
Phillips
Powder River
P i i
Prairie
Richland
Roosevelt
Sheridan
Valley
Wibaux
Magda Nelson
Area 4 – Kalispell
Phone: 257-5245
mmnelson@bresnan.net
Area 4 – Kalispell
Flathead
Glacier
Lake
Liberty
Lincoln
Mineral
Missoula
Pondera
R
Ravalli
lli
Sanders
Toole
67
68
34
THE BASICS OF FUND ACCOUNTING
• Q
QUIZ #1 – Account Type & Normal Balance
yp
Accounts to use:
* Asset
* Liability
* Equity
* Revenue
* Expenditure/Expense
* Contra‐asset (use 2 times)
Normal Balances:
* Debit
* Credit
69
THE BASICS OF FUND ACCOUNTING
QUIZ #1 – Account Type & Normal Balance
TYPE OF
NORMAL
ACCOUNT NAME
ACCOUNT BALANCE
Depreciation
__________
_________
Accounts Payable
__________
_________
Deferred Revenue
__________
_________
Interest Receivable
__________ ________
Assigned Fund Balance
__________ _________
70
35
THE BASICS OF FUND ACCOUNTING
QUIZ #1 - CONT.
TYPE OF
NORMAL
ACCOUNT NAME
ACCOUNT BALANCE
Cash
__________
_________
Amount To Be Provided
__________
_________
g
Interest Earnings
__________
_________
Allowance For Depreciation
__________ ________
City Court Fines (Collected)
__________ _________
71
THE BASICS OF FUND ACCOUNTING
QUIZ #1 - CONT.
TYPE OF
NORMAL
ACCOUNT NAME
ACCOUNT BALANCE
Real Estate Taxes (Collected)
__________
_________
Capital Outlay
__________
_________
Warrants Payable
y
__________
_________
Inventories
__________
________
Net Assets
__________ _________
72
36
THE BASICS OF FUND ACCOUNTING
QUIZ #1 - CONT.
TYPE OF
NORMAL
ACCOUNT NAME
ACCOUNT BALANCE
Due To Other Governments
__________
_________
Accounts Receivable
__________
_________
Debt Service Interest
__________
_________
Judgments & Losses
__________ ________
Prepaid Expense
__________ _________
73
THE BASICS OF FUND ACCOUNTING
QUIZ #1 - CONT.
TYPE OF
NORMAL
ACCOUNT NAME
ACCOUNT BALANCE
Bonds Payable
__________
_________
Taxes Receivable
__________
_________
Gas Tax Apportionment
pp
__________
_________
Deposits Payable
__________
________
Animal Licenses
__________ _________
74
37
THE BASICS OF FUND ACCOUNTING
QUIZ #1 - CONT.
TYPE OF
NORMAL
ACCOUNT NAME
ACCOUNT BALANCE
Supplies purchased
_________
_________
Sale of Capital Assets
__________
_________
Allowance For Uncollectible Accounts
__________
_________
County Option Tax
__________ ________
Federal Disaster Aid
__________ _________
75
THE BASICS OF FUND ACCOUNTING
QUIZ #1 - CONT.
TYPE OF
NORMAL
ACCOUNT NAME
ACCOUNT BALANCE
Street & Road Maintenance
_________
_________
Due From Other Funds
__________
_________
Machineryy & Equipment
q p
__________
_________
Fund Balance
__________
________
Charge for Copying Services (collected) __________ _________
76
38
THE BASICS OF FUND ACCOUNTING
QUIZ #1 - CONT.
TYPE OF
NORMAL
ACCOUNT NAME
ACCOUNT BALANCE
Jury Services
_________
_________
Penalty & Interest on Delinq. Taxes
__________
_________
Restricted for Revenue Bond
__________
_________
Advance to other Funds
__________
________
77
78
39
79
80
40
THE BASICS OF FUND ACCOUNTING
• Quiz #2 – Common entries
– Accounts to use for this quiz:














Cash
Supplies
Gas Tax Apportionment
Taxes Receivable
Accounts Receivable
Accounts Payable
Interest Receivable
Interest Revenue
Prepaid Expense
Expense (Enterprise Funds)/Expenditure (Governmental Funds)
Depreciation
Allowance for Depreciation
Deferred Revenue
Tax Revenue
81
THE BASICS OF FUND ACCOUNTING
QUIZ #2 – ENTRIES
DEBIT
CREDIT
Record Receipt of Gas Tax Apportionment from State
______________________________
$______
___________________________
$_______
Record Purchase of Supplies
______________________________
___________________________
$______
$_______
82
41
THE BASICS OF FUND ACCOUNTING
QUIZ #2 – ENTRIES CONT.
DEBIT
CREDIT
Record the Receipt of Taxes
______________________________
$______
___________________________
$_______
R
Record
d th
the A
Accruall off E
Expenditures
dit
______________________________
$______
___________________________
$_______
83
THE BASICS OF FUND ACCOUNTING
QUIZ #2 – ENTRIES CONT.
DEBIT
CREDIT
Record the Payment of the Expenditure Accrual
______________________________
$______
___________________________
$_______
Record the Accrual of Interest Revenue
______________________________
___________________________
$______
$_______
84
42
THE BASICS OF FUND ACCOUNTING
QUIZ #2 – ENTRIES CONT.
DEBIT
CREDIT
Record the Receipt of the Interest Revenue
______________________________
$______
___________________________
$_______
Record Annual Depreciation Expense
______________________________
___________________________
$______
$_______
85
86
43
87
44