Government and Non-Profit

Q1. Distinguish between Capital Projects Funds (CPF), Debt Service Funds (DSF) Leased Assets and Permanent Funds.
Q2. San Diego School District accepts donations that are used to provide awards to graduating seniors. Record the following transactions in the San Diego Private Purpose Trust Fund – Awards Fund. Also, prepare a statement of changes in fiduciary net position for the Fund for the year ended December 31, 2013. This is the first year of operation for the San Diego Private Purpose Trust Fund – Awards Fund.
a. Layla, noted philanthropist, donates marketable securities worth $600,000 to the District, stipulating that all earnings on the securities be used for awards to graduates.
b. The District receives dividends on the securities in the amount of $15,000.
c. The District makes various awards to graduating seniors in the amount of $20,000.
d. When the District prepares financial statements at the end of the year, the marketable securities have a fair value of $590,000.

Q3. Following are December 31, 2013 trial balances (budgetary accounts excluded) for the General Fund, Debt Service Fund, and Capital Projects Fund for L.A. County.
Prepare a governmental funds balance sheet and a statement of revenues, expenditures, and changes in fund balances as of and for the year ended December 31, 2013.
The General Fund had encumbrances of $25 outstanding on December 31, 2013.
Debits Credits
General Fund
Cash $1,900
Property taxes receivable – delinquent 330
Allowance for uncollectible property taxes $ 10
Accounts payable 120
Deferred revenues 250
Unassigned fund balance, January 1, 2013 1,720
Revenues – property taxes 3,200
Revenues – licenses and fees 350
Revenues – parks admissions fees 40
Investment income 220
Expenditures – general government 360
Expenditures – public safety 1,800
Expenditures – public works 840
Expenditures – parks and culture 350
Transfer out to Debt Service Fund 250
Transfer out to Capital Projects Fund 80 ____ Totals $5,910 $5,910

Debt Service Fund
Cash $70
Assigned fund balance, January 1, 2013 $60
Expenditures – bond principal 110
Expenditures – interest 130
Transfer in from General Fund ___ 250
Totals $310 $310
Capital Projects Fund
Cash $240
Expenditures – capital outlay 420
Transfer in from General Fund $80
Proceeds of bonds ___ 580
Totals $660 $660
Q4. Following information are related with Internal Service Fund of City of Jeddah. You are required to prepare a Statement of Cash Flows for the year ended December 31, 2018.
Amount ($)
Operating income
68,400
Increase in Inventories
27,200
Interest received
800
Acquisition of Capital Assets
2,800
Payment to Suppliers
32,000
Depreciation expense
29,600
Payments for Rent
21,200
Increase in Accounts Payable
54,400
Receipts from Customers
378,400
Payment to Employees
200,000
Cash balance at the beginning of the year
584,800