1. (Transaction Analysis) a. Analyze the effects of the following transactions on the accounting equations of the various funds and nonfund accounts of a state or local government. 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. Example: Cash received for licenses during 20X1, $8,000. Answer: Governmental Funds No. Fund FA RL E. GF $8,000 $8,000 GF - General fund General Capital Assets and General Long-Term Liabilities Accounts GCA GLTL NP FB Revenues of $8,000 reported in GF. 1. The government-owned and operated electric utility billed users $2,000,000 for clectricity usage. This included $100,000 billed to General Fund departments for electricity usage. 2. $50,000 of General Fund money was loaned to a Capital Projects Fund to allow construction on a project to begin before the related bonds were issued. The loan is to be repaid in 6 months. 3. $1,000,000 of property taxes were levied during the year to provide financing for the budget of the year of levy; $800,000 was collected by year end. Another $85,000 was collected during the first 60 days of the next fiscal year. An additional $100,000 is expected to be collected during the remainder of the second fiscal year and $15,000 is estimated to be uncollectible. 4. The government issued a $7,000,000, 6 percent, 5-year note halfway through the fiscal year to provide partial financing for construction of a bridge. 5. The government issued a $1,000,000, 6 percent, 1-year note halfway through the fiscal year to provide temporary financing for a special program, which will be financed ultimately by reimbursements from a restricted grant awarded to the government for the specific purpose of financing that program. However, no cash has been received from the grantor to date. 6. A truck for a general government department was purchased for $40,000 cash. 7. Repaid outstanding general government bonds, $2,000,000, and paid $100,000 interest. 8. The 1-year note from transaction 5 matured and was paid along with the interest of $60,000