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I need an explanation for this Accounting question to help me study.
Continuous Problem – City of Monroe
to Accompany
Essentials of Accounting for Governmental
and Not-for-Profit Organizations:
Twelfth Edition
Chapters 2 through 8 describe accounting and financial reporting by state and local governments. A continuous problem is presented to provide an overview of the reporting process, including preparation of fund basis and government-wide statements. The problem assumes the government is using fund accounting for its internal record-keeping and then at year-end makes necessary adjustments to prepare the government-wide statements. The problem that follows is presented in the same order as the textbook (beginning with Chapters 3, and 4).
Each chapter requires the preparation of journal entries to record the events and transactions of governmental, proprietary, or fiduciary funds. For the General Fund, use control accounts for the budgetary accounts, revenues, expenditures and encumbrances. For all other funds, use separate accounts for each type of revenue and expenditure/expense. At appropriate stages, preparation of the fund and government-wide statements are required. The following funds are included in this series of problems:
Governmental Funds
Ø General
Ø Special revenue—Street and Highway Fund
Ø Capital projects—City Hall Annex Construction Fund
Ø Debt service—City Jail Annex Debt Service Fund
Ø Debt service—City Hall Debt Service Fund
Proprietary Funds
Ø Internal service—Stores and Services Fund
Ø Enterprise—Water and Sewer Fund
Fiduciary Funds
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