A.Analyze the effects of the following transactions on the accounting equations of the various funds and non fund accounts of a state or local government .( For any borrowing transactions, reflect any neccesary year end interest accruals in your responses.
b. Indicate how each transactoin would be reported in the operating statement for each fund affected. be sure to identify the fund and the operating statemnt.
1. A government incurred and paid salaries for general government employees, 500,000.
2. A government purchased a truck for 38,000 cash for the use of a general government department that is financed from restricted taxes that can be used only to support that departments programs.
3. a government issued(NNN) NNN-NNNNof 6% 10 year bonds to help finance expansion of a facility used by one of its public operations. the bonds were issued three months before year end and pay interest annually .
4. A government issued a 9 month 10% note payable for 50000. the note was issued 6 months before the end of the fiscal year to provide financing for various programs that are financed promarily from general tax revenues.
5. a government issued general obligations bonds at par, 15 million to finance construction of a new school building. The bonds bear interest at 8% payable annually, and were dated and issued 6 months before the end of the year.
6. The government purchased land for the site of the school, 185,000.
7. The government incurred and paid construction costs on the school building, which was completed during the year, 14,715,000.
8. The governments governing body ordered that hte unused school bond proceeds be set aside for paying proncipal and interest on the bonds and those resources were set aside in the appropriate funds.
9. Gereneral tax revenues,(NNN) NNN-NNNN were paid to the fund to be used to pay principle and interest on the school bonds.
10. The first annual interest payment on the school bonds came due and was paid.
11. the 9 month note(from 4) was repaid with interest when due.
12. The governemnt owned public utility sold services to the public on account 1 million no uncollectibles are expected.
13. The government owned public utility sold services to other departments of the governemnt 110000. the other departments have paid all but 10000.
14. The government sold a police dept computer for 4000. its original cost (3 years prior) was 15000. At the time of purchase the computer was expected to have useful life of 4 years and residual value of 7000.
15. The government paid 100000 priciple and 10000 interest on a longterm note when due at mid year.