Continuous Problem Instructions

Continuous Problem – City of Monroe

Continuous Problem – City of Monroe

TO ACCOMPANY

ESSENTIALS OF ACCOUNTING FOR GOVERNMENTAL

AND NOT-FOR-PROFIT ORGANIZATIONS:

ELEVENTH 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

 General

 Special revenue—Street and Highway Fund

 Capital projects—City Hall Annex Construction Fund

 Debt service—City Jail Annex Debt Service Fund

 Debt service—City Hall Debt Service Fund

Proprietary Funds

 Internal service—Stores and Services Fund

 Enterprise—Water and Sewer Fund

Fiduciary Funds

 Private-purpose—Student Scholarship Fund

 Pension trust—Fire and Police Retirement Fund

Chapters 3 & 4

The Balance Sheets of the General Fund and the Street and Highway Fund of the City of

Monroe as of December 31, 2013, follow. These (beginning) balances have been entered in

the proper general ledger accounts, as of 1/1/2014.

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Continuous Problem – City of Monroe

CITY OF MONROE

General Fund...