a. Analyze the effects of each of the following transactions on each of the funds and/or the nonfund accounts of the city of Nancy. Identify the fund that typically would be used to record the transaction.

b. Indicate how each transaction would be reported in the operating statement for each fund affected.

1. Salaries and wages for firefighters and police officers incurred but not paid, $75,000.
2: The city borrowed $9,000,000 to finance construction of a new city executive office building by issuing bonds at par.
2. The city paid $5,000,000 to the office building contractor for work performed during the fiscal year.
4. The city purchased several notebook computers by issuing a $60,000, 6%, 6-month note to the vendor. The note is due March 1 of the next fiscal year, which is the calendar year. (The note 1s considered a fund liability.)
5. General Fund resources of $8,000,000 were paid to a newly established Airport Enterprise Fund to provide initial start-up capital.
6. A $3,000,000 personal injury lawsuit has been filed against the city. The controller determines that it is probable that a judgment in that amount will be made in the future but does not expect to have to pay the judgment for another 3 years. The incident relates to general government activities.
7. The city repaid one-half ($10,000,000) of general obligation bonds that had been issued several years before to finance construction of a school building. Interest of $1,000,000 matured and was paid.
8. The city sold general capital assets with an original cost of $50,000 and a $1,000 book value for $1,500. There are no restrictions on the use of the money.