GOVERNMENTAL ACCOUNTING PRACTICE SET
Part A due:
Part B due:
Introduction
The date is December 31, 2091. You have just risen from a three month cryogenic sleep during
which you traveled from Earth to Europa, the only inhabited moon of Jupiter.
Europa has been colonized since the early 2060's. To encourage development the United Earth
Council (roughly equivalent to a federal government for the planet Earth) gave land grants to
colonists willing to leave Earth and settle this new world. The Council also built a series of
water purification and power generating plants. These plants utilize the natural geothermal
resources of Europa to generate electrical power.
Most of the inhabitants are engaged in the operation of the quarter million acre farms which span
the temperate zones on either side of the equator. The labor is performed by robots through a
centralized computer under the direction of the owner/farmer and family members. Harvests are
transported by freighter to Earth. It is lonely, although profitable life with an average of 10
harvests per Earth year. All banking is performed on Earth through electronic funds transfers. A
substantial business sector has developed, servicing the farming operations.
After several decades of hard work the inhabitants of Europa are beginning to enjoy the rewards
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3. Worksheets and journal entries for the governmental activities portion of the
Government-wide financial statements
Check figures:
General fund cash: $ 143,249
General fund unassigned fund balance 85,229
Governmental funds: Total fund balance 1,948,249
Enterprise fund cash: 69,500
Enterprise fund net position: 54,183
A set of Excel templates (Excel) are available for your use. Please turn in the printed copy of
each worksheet.
PROVINCE OF EUROPA
Transaction list
for the year ended December 31, 2091
1. At 12-31-2090, the remaining cash and supplies on hand in the
government offices were transferred to the new Province government.
The opening trial balance for the Province for 1-1-2091 was as
follows:
GENERAL FUND
trial balance
Jan. 1, 2091
debits credits
Cash 18,000 Fund Balance:
2. On December 31, 2090, the United Earth Council (U.E.C.) transferred
the fixed assets which have been constructed with U.E.C. funds. The
Province Council assigned custody of these assets to the general
Province government and the Bureau of Electricity and Water as
follows:
Useful Salvage
Government Bureau Life Value
Buildings, roads, and
other structures $1,395,000 $ 450,000 10 $ 0
Equipment 480,000 150,000 5 0
3. The government of the Europa Province established the Bureau of
4. On January 1, 2091, The Province Council approved budgets for 2091
as follows:
Budget Items
Province
Government
(General
Fund)
Capital
Additions
Bureau of
Electricity
and Water
Revenue and other financing sources
Property Taxes
Sales Taxes
Fees, Licenses and Permits
$3,720,000
750,000
250,000
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6. On January 31, 2091, $3,700,000 in property taxes were levied. Of
8. During 2091, the Province government placed orders amounting to
$940,000 for supplies. All the supplies ordered were received during
the year with an invoice price of $935,000 (there are no outstanding
encumbrances for supplies). $900,000 was paid during the year. The
10. The Province Council approved the construction of a new school
19. During 2091, the Province government received the following cash
2091. Salaries and wages are classified by governmental functions as
follows:
Incurred
21. During 2091, the Bureau of Electricity and Water billed the
Province government and the residents for electricity and water
services in the amounts of $920,000 and $2,120,000 respectively. The
Bureau estimated that 2% of the gross revenue from the residents will
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24. As of December 31, 2091, physical inventories of supplies on hand
report the following:
30. For purposes of classifying fund balances in the governmental
funds, assume:
• Supplies are the only nonspendable resource,
31. Prepare closing entries, where appropriate
8. Expenditures for bond principal should be eliminated.