Prepare Government-Wide Financial Statements Practice Test

A state government (State of Pine) reports government-wide financial statements under GASB standards. The State levied $120,000,000 of property taxes for the fiscal year ended June 30, 20X5, of which $108,000,000 is expected to be collected within 60 days after year-end and $10,000,000 is expected to be collected between 61 and 180 days after year-end; $2,000,000 is expected to be uncollectible. At year-end, the State has recorded the levy and related receivable in its general fund. For the government-wide statement of activities, how should the State recognize property tax revenue for the year ended June 30, 20X5 under GASB standards?

A local government (City of Northbridge) issues $50,000,000 of general obligation bonds at par on July 1, 20X4 to finance governmental activities, incurring $600,000 of bond issuance costs paid from the bond proceeds. During the year ended June 30, 20X5, the City paid $2,000,000 of principal and $2,500,000 of interest. The City prepares government-wide financial statements under GASB standards. In the government-wide statements, how should the City present the $600,000 bond issuance costs?