menu
bartleby
search
close search
Hit Return to see all results

E 19-7 Transaction analysis—governmental fundsUse transaction analysis to determine the effects of each of the following transactions in the general fund.Salaries paid totaled $30,000. Additional salaries incurred, but not paid, totaled $2,500.Levied property taxes of $100,000; $98,000 was collected during the year. The balance is expected to be uncollectible.Borrowed $60,000 by issuing a nine-month note bearing interest at 7 percent.Repaid the note plus interest when due.Borrowed $600,000 by issuing bonds at par. The bonds mature in 10 years.Purchased equipment costing $25,000 with cash.Sold equipment at the end of its expected useful life. The equipment had no expected residual value when acquired (at a cost of $13,000), but it sold for $1,200.Determined that it is probable that a lawsuit involving a claim against a department will result in a settlement of at least $50,000. However, it is not expected that any payments will be required for two years or more.

Question

E 19-7 Transaction analysis—governmental funds

Use transaction analysis to determine the effects of each of the following transactions in the general fund.

  1. Salaries paid totaled $30,000. Additional salaries incurred, but not paid, totaled $2,500.

  2. Levied property taxes of $100,000; $98,000 was collected during the year. The balance is expected to be uncollectible.

  3. Borrowed $60,000 by issuing a nine-month note bearing interest at 7 percent.

  4. Repaid the note plus interest when due.

  5. Borrowed $600,000 by issuing bonds at par. The bonds mature in 10 years.

  6. Purchased equipment costing $25,000 with cash.

  7. Sold equipment at the end of its expected useful life. The equipment had no expected residual value when acquired (at a cost of $13,000), but it sold for $1,200.

  8. Determined that it is probable that a lawsuit involving a claim against a department will result in a settlement of at least $50,000. However, it is not expected that any payments will be required for two years or more.

check_circleAnswer
Step 1

A general fund is the primary fund used by Government. All the common resources and their utilizations are recorded in a general fund.

...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Our solutions are written by experts, many with advanced degrees, and available 24/7

See Solution
Tagged in

Business

Accounting

Other

Related Accounting Q&A

Find answers to questions asked by student like you

Show more Q&A add
question_answer

Q: 3 2 1 Record the cost of the sale, $3,150. Note: Enter debits before credits. Debit Credit General J...

A: When sales are recorded, the cost of goods sold needs to be booked as per the matching principle aga...

question_answer

Q: 1 2 3 4 Sold $32,000 of merchandise on MasterCard credit cards. MasterCard charges a 5% fee. eBook H...

A: A journal entry is the record of transaction in the books of account. Journal entry for merchandise ...

question_answer

Q: E 16-8 Recording new partner investment—Revaluation case Bow and Mon are partners in a retail busine...

A: Step 1:Calculate the goodwill brought by Joh. 

question_answer

Q: I need help and i do not have to do requirement 2

A: Note: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts ...

question_answer

Q: Question #50

A: As Cindy is self employed and doing business from her home office, she is entitled to deduct home of...

question_answer

Q: Early in the year Bill Sharnes and several friends organized a corporation called Sharnes Communicat...

A: Journal entries means writing down the transaction that takes place in a business, in the journal of...

question_answer

Q: Can somebody help me with this?   The polishing department of Taylor Manufacturing Company operated ...

A: A flexible budget is a budget that adjusts with the changes in the level of output or activity. It i...

question_answer

Q: CVP Analysis; Commissions; Ethics Lionel Corporation manufactures pharmaceutical products sold throu...

A: Note: Since we are entitled to answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit t...

question_answer

Q: S. Marion, a speech therapist, opened a clinic in the name of Marion Clinic. Her accountant prepared...

A: All assets and expenses increase on debiting and decrease on crediting. ll liabilities and incommesn...

Sorry about that. What wasn’t helpful?