University of Palestine Instructor Name: Dr.

Khaled Eissa
Course No: ACC 3309
Course Title: Governmental Accounting Student No.: ______________________
Date: 30/03/2015 Student Name: _____________________
No. of Questions: (3)
Time: 1 hour College Name: Business Administration
Mid-term Exam
Using Calculator (yes) nd Dep. / Specialist: Accounting
2 Semester 2014/2015
Using Dictionary (No)
Total Grade: 20

Question 1
The Village of Rebl’s budget calls for property tax revenues for the fiscal year ending December 31, 2015, of
$5,820,000. Village records indicate that, on average, 3% of taxes levied are not collected. The county tax
assessor has assessed the value of taxable property located in the village at $120,000,000.
Required
a) Calculate to the nearest penny what tax rate per $100 of assessed valuation is required to generate a
tax levy that will produce the required amount of revenue for the year.
b) Record the tax levy for 2015 in the General Fund.
c) By December 31, 2015, $5,200,000 of the current property tax levy had been collected. Record the
amounts collected and reclassify the uncollected amount as delinquent. Interest and penalties of 6
percent were immediately due on the delinquent taxes, but the finance director estimates that 10
percent will not be collectible. Record the interest and penalties receivable.

Question 2:
The following transactions occurred during the 2014 fiscal year for the City of Fayette:
1. The budget prepared for the fiscal year 2011 was as follows:
Estimated Revenue:
Taxes $ 976,000
License and permits 162,000
Intergovernmental revenue 198,000
Miscellaneous revenues 31,000
Total Estimated Revenues 1,367,000
Appropriations:
General Government 235,000
Public Safety 443,000
Public works 325,000
Health and welfare 300,000
Miscellaneous appropriations 43,000
Total Appropriations 1,346,000
Budgeted increase in fund balance $21,000

2. Encumbrances issued against the appropriations during the year were as follows:
General Government $30,000
Public Safety 125,000
Public works 180,000
Health and welfare 80,000
Miscellaneous appropriations 35,000
Total $450,000

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 University of Palestine Instructor Name: Dr. Khaled Eissa
Course No: ACC 3309
Course Title: Governmental Accounting Student No.: ______________________
Date: 30/03/2015 Student Name: _____________________
No. of Questions: (3)
Time: 1 hour College Name: Business Administration
Mid-term Exam
Using Calculator (yes) nd Dep. / Specialist: Accounting
2 Semester 2014/2015
Using Dictionary (No)
Total Grade: 20

3. Invoices were received and approved for payment for items ordered in documents recorded as
encumbrances in Transaction (2) of this problem. The following appropriations were affected.
Actual Liability Estimated Liability
General Government $26,350 $26,100
Public Safety 118,100 120,000
Public works 170,000 168,000
Health and welfare 65,300 65,000
Miscellaneous appropriations 35,000 35,000
$414,750 $414,100

Required
Record the preceding transactions in general journal form for fiscal year 2014 in the General Fund general
journals.

Question 3:
The following alphabetic listing displays selected balances in the governmental activities accounts of the City of
Soroka as of December 31, 2014.
City of Soroka - Governmental Activities
Selected Account Balances for the Year Ended December 31, 2014
Debits Credits
Expenses – Culture and Recreation 37,056
Expenses – General Government 28,713
Program Revenue – Culture & Recreation – Operating Grants 7,350
Program Revenue – General Government – Charges for Services 9,438
General Revenues – Property Taxes 168,900
General Revenues – Unrestricted Grants and Contribution 3,600
Expenses – Health and Sanitation 20,214
Expenses – Interest on Long-Term Debt 18,204
Program Revenue – Public Safety – Charges for Services 3,594
Program Revenue – Public Safety Operating Grants 3,921
General Revenues – Investment Earnings 5,874
Unrestricted Net Assets 380,019
Expenses – Public Safety 104,532
Program Revenue – Culture & Recreation – Charges for Services 11,985
Program Revenue – General Government – Operating Grants 2,529
Program Revenue – Health & Sanitation – Charges for Services 16,836
Program Revenue – Public Safety – Capital Grants 186
Special Item – Gain on Sale of Park Land 10,419
Required:
Prepare a (partial) statement of activities in good form.
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