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. Include any adjustments required at the government's December 31 year-end.

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 the statement and the fund, as well as the reporting classification.

A government issued $10 million of bonds to finance construction of a plant expansion for its Water and Sewer

Enterprise Fund's water treatment plant. The 20-year bonds bear interest of 10%, payable semiannually each March 31 and September 30. The bonds were issued at par on April 1, 20X1. The September payment was made as scheduled.

2. A government issued 55 million of general obligation bonds to finance construction of an addition to its courthouse.

The 10-year bonds pay interest of 10%, payable semiannually each March 31 and September 30. The bonds were issued at par on April 1, 20X1. The September payment was made as scheduled from the appropriate fund.

1. A government purchased a truck at a cost of $45,000 for a general government department. The truck was paid for from unrestricted resources.
2. A government paid $200,000 of its general revenues from its unrestricted fund to the fund to be used to service its outstanding general government bonds.
3. A government paid general government bond principal ($500,000) and interest ($1,000,000) when it was due.

Resources for the payment were available in the appropriate fund.