Indicate (i) how each of the following transactions impacts the fund balance of the general fund, and its classifications, for fund financial statements and (ii) what impact each transaction has on the net position balance of the Government Activities on the government-wide financial statements.a. Issue a five-year bond for $6 million to finance general operations.b. Pay cash of $149,000 for a truck to be used by the police department.c. The fire department pays $17,000 to a government motor pool that services the vehicles of only the police and fire departments. Work was done on several department vehicles. d. Levy property taxes of $75,000 for the current year that will not be collected until four months into the subsequent year.e. Receive a grant for $7,000 that must be returned unless the money is spent according to the stipulations of the conveyance. That is expected to happen in the future.f. Businesses make sales of $20 million during the current year. The government charges a 5 percent sales tax. Half of this amount is to be collected 10 days after the end of the current year with the remainder to be collected 14 weeks later. “Available” has been defined by this govern-ment as 75 days.g. Order a computer for the school system at an anticipated cost of $23,000.h. A cash transfer of $18,000 is approved from the general fund to a capital projects fund.
Indicate (i) how each of the following transactions impacts the fund balance of the general fund,
and its classifications, for fund financial statements and (ii) what impact each transaction has on the
net position balance of the Government Activities on the government-wide financial statements.
a. Issue a five-year bond for $6 million to finance general operations.
b. Pay cash of $149,000 for a truck to be used by the police department.
c. The fire department pays $17,000 to a government motor pool that services the vehicles of only the police and fire departments. Work was done on several department vehicles. d. Levy property taxes of $75,000 for the current year that will not be collected until four months
into the subsequent year.
e. Receive a grant for $7,000 that must be returned unless the money is spent according to the
stipulations of the conveyance. That is expected to happen in the future.
f. Businesses make sales of $20 million during the current year. The government charges a
5 percent sales tax. Half of this amount is to be collected 10 days after the end of the current year
with the remainder to be collected 14 weeks later. “Available” has been defined by this govern-
ment as 75 days.
g. Order a computer for the school system at an anticipated cost of $23,000.
h. A cash transfer of $18,000 is approved from the general fund to a capital projects fund.
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