Question

2. A large city uses certain governmental-type funds (General, Special Revenue, Debt Service, and Capital Projects) and proprietary-type funds (Internal Service and Enterprise). State the fund or funds that would be used to record the following transactions 1. 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. 2. 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. 3. The city paid the salaries of its police and fire officers. 4. To help finance construction of the school, the city received $1 million from the state. 5. 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 6. To pay interest and principal on the debt issued to construct the school, the city transferred $150,000 from the 7. Metro Bus is a city-operated mass transit facility. Metro Bus deposited passenger fares for the day into its bank 8. The city paid $500,000 to the contractor that was building the new school. department for servicing the police vehicles. fund that finances day-to-day activities to the fund that accumulates resources to pay off the debt. account. Also, Metro Bus received an invoice from Central Vehicle Repair Shop for bus repair work. 9. 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. 10. The new school was completed. In accordance with city statutes, all remaining construction assets were sent to the fund that pays the debt service on the construction bonds.

Answer 1

In the above given question we have been given various governmental transaction,we are required to classify them on the basis of the governmental type of funds being used in such transactions. hence given below are the type of governmental funds used in various transactions.

a) General Fund, Special Revenue Fund.

b) Capital project fund

C) General fund .

d) capital project fund

e) internal service fund, general fund

f) general fund, debt service fund

g) enterprise fund, intern1al service fund

h) capital projects fund

i) general fund

j) capital projects fund, debt service fund