(a) Prepare general journal entries to record the following transactions in the General Ledger of the General Fund or a Special Revenue Fund, as appropriate. (b) Explain how these transactions and events are reported in the General Fund or Special Revenue Fund Statement of Revenues, Expenditures, and Changes in Fund Balance.
1. $100,000 of General Fund cash was contributed to establish a new Internal Service Fund.
2. A truck—acquired two years ago with General Fund revenues for $19,000—with a fair value of $10,000 was contributed to a department financed by an Enterprise Fund. (Record the contribution of the asset to the Enterprise Fund—not the purchase.)
3. The Sanitation Department, accounted for in the General Fund, billed the Municipal Airport, accounted for in an Enterprise Fund, $800 for garbage collection.
4. General Fund cash of $50,000—to be repaid in 90 days—was provided to enable construction to begin on a new courthouse before a bond issue was sold.
5. A $9,000,000 bond issue to finance construction of a major addition to the civic center was sold at par. The civic center is accounted for as part of general government activities.
6. General Fund disbursements during May included a contribution of $35,000 to a Capital Projects Fund to help finance a major capital project.
7. After retirement of the related debt, the balance of the net assets (all cash) of a Debt Service Fund, $8,500, was transferred to the General Fund.
8. General Fund cash of $70,000 was loaned to an Enterprise Fund from resources that have been assigned to a specific future purpose. The loan is to be repaid in three years.
9. An accounting error made during the preceding accounting period caused the General Fund cash balance at the beginning of the current year to be understated by $6,500.
10. Another accounting error was discovered: Expenditures of $4,000, properly chargeable to a Capital Projects Fund, were inadvertently charged to a Special Revenue Fund during the current year.