48. The following related entries were recorded in sequence in the general fund of municipality: 1. Encumbrances 2. 3. Expenditures 15,000 15,000 15,350 15,000 15,000 15,350 Reserve for Encumbrances Reserve for Encumbrances Encumbrances Vouchers Payable The sequence of entries indicates that: A) B) C) D) an adverse event was foreseen and a reserve of $15,000 was created; later the reserve was cancelled and a liability for the item was acknowledged. an order was placed for goods or services estimated to cost $15,000; the actual cost was $15,350 for which a liability was acknowledged upon receipt. the first entry was erroneous and was reversed; a liability of $15,350 was acknowledged encumbrances were anticipated but later failed to materialize and were reversed liability of $15,350 was incurred 49. Under GASB Statement No. 34, a government-wide financial statement should include A) notes to the financial statements. B) statement of financial position. C) statement of revenues & and expenses. D) statement of activities 50. Under Southdale Hospital's established rate structure, the hospital would have earned patient service revenue of $7,000,000 for the year ended December 31, 2017. However, Southdale did not expect to collect this amount because of charity allowances of $1,000,000 and discounts of $500,000 to third party payers. In May 2017, Southdale purchased bandages from Ace Supply Co. at a cost of $5,000. However, Ace notified Southdale that the invoice was being cancelled and that the bandages were being donated to Southdale. For the year ended December 31, 2017, Southdale should record the donation of bandages as: A) a $5,000 reduction in operating expenses. B) other operating revenue of $5,000. C) nonoperating revenue of $5,000. D) a memorandum entry only