55. (Identifying transactions to the appropriate fund - relatively simple situations)
A small village maintains a General Fund, Special Revenue Fund, Capital Projects Fund, and Internal Service Fund. State the fund (or funds) that would be used to record each of the following events.
a.Property taxes were collected to finance the day-to-day activities of the village.
b.The village issued debt for the purpose of constructing a new firehouse.
c.The village paid an invoice for construction of a new firehouse.
d.Mechanics' salaries were paid by the Motor Pool Fund, which was established to provide a centralized location for servicing all village vehicles on a user-charge basis.
e.The village paid the salaries of its police officers.
f.The village received a check from the state to help finance the new firehouse.
g.The village received a grant, which must be used for beautifying and creating nature walks within the park.
h.The Motor Pool Fund sent an invoice for maintenance of police and fire vehicles.
56.(Identifying transactions to funds - situations involving more than one fund)
A large city uses governmental-type funds (General, Special Revenue, Debt Service, Capital Projects) and proprietary-type funds (Internal Service, Enterprise). State the fund or funds that would be used to record the following transactions.
a.The city sent property tax bills to all taxpayers. Most of the taxes were to be used to finance the day-to-day activities of the city. A portion of the tax, however, was levied for the specific purpose of financing operations of the City Library District, created by vote of the Public.
b.The city needed a new school. It issued $4 million of long-term debt and put the proceeds into a fund to finance school construction.
c.The city paid the salaries of its police and fire officers.
d.To help finance construction of the school, the city received $1 million from the state.
e.Central Vehicle Repair Shop is a city-operated facility that does work for all city agencies and bills the agencies at cost for the work. At the end of the month, Central Vehicle Repair Shop sent invoices to the police department for servicing the police vehicles.
f.To pay interest and principal on the debt issued to construct the school, the city transferred $150,000 from the fund that finances day-to-day activities to the fund that accumulates resources to pay off the debt.
g.Metro Bus is a city-operated mass transit facility. Metro Bus deposited passenger fares for the day into its bank account. Also, Metro Bus received an invoice from Central Vehicle Repair Shop for bus repair work.
h.The city paid $500,000 to the contractor that was building the new school.
i.The city bought a new police sedan. In accordance with city financial policies, the city paid for the sedan out of its day-to-day operating funds.
j. The new school was completed. In accordance with city statutes, all remaining construction assets w