A. Analyze the effects of the following transactions, including year-end interest accruals, on the accounting equations of the various funds and nonfund accounts of a state or local government. Unless otherwise indicated, the items are for unrelated entities. B. Indicate how each transaction would be reported in the operating statement for each fund affected. Indicate both the statement and the fund as well as the reporting classification 1. Salaries paid to a city's general government employees totaled $3,000,000 for the year. Accrued salaries at the end of the year were $150,000. There were no accrued salaries at the beginning of the year. 2. A government electric utility purchased transmission equipment during the year at a cost of $5,000,000. One million dollars was paid in cash and the government borrowed the balance on a two-year, 8% note payable. 3. The equipment purchase in transaction 2 has a 20-year estimated useful life and no residual value. The purchase occurred at the beginning of the year. 4. Benton County issued $8,000,000 of ten-year, 6% bonds at par on July 1, 20X8. The bonds were issued to finance construction of a high school gymnasium/office building complex. Interest on the bonds is paid semi-annually. 5. Benton County paid $3,200,000 during the year to the contractor for the project in trans 4 6. Benton paid $240,000 from its General Fund to the fund to be used to service the bonds to provide for the first annual interest payment which will be due in the next fiscal year. 7. Interest on the Benton County bonds was paid when due 8. Albemarle County repaid a $500,000 bond plus interest of $30,000 at the due date, July 1, 20X8. The bond was issued for finance construction of a police station. 9. Franklin County borrowed $300,000 on a 6-month, 9% note payable dated November 1, 20X8. The note was issued to provide financing for general fund operations and is considered a fund liability. The County's fiscal year ends on December 31. 10. The General Fund loaned $3 million to a fund established to account for the government's central data processing department. The fund charges users of data processing services a fee that is calculated to recoup the full cost of providing the data processing services. The loan is to be repaid in 4 years.