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General Fund Transaction Impacts

Indicate (i) how each of the following transactions impacts the fund balance of the General Fund for fund-based financial statements and (ii) what the impact is on the net asset balance of the governmental funds for government- wide financial statements.

A. Issue a five-year bond for $6 million to finance general operations.
B. Pay cash fo $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.
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 $7000 that must be returned unless the money is spent according to the stipulations of the conveyance.
F. 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 weeks after the end of the year. "Available"has been defined by the government 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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ANSWERS
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EXERCISE

Indicate (i) how each of the following transactions impacts the fund balance of the General Fund for fund-based financial statements and (ii) what the impact is on the net asset balance of the governmental funds for government- wide financial ...

Solution Summary

The general fund transaction impacts are examined.

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