A summary of a government districts first year transactions follows (all dollar amounts in millions): (CLO 3 & 4) (10 marks)

1- The district levies and collected taxes of $300.

2- It issues long term bonds of $500. The bonds will be used to finance the acquisition of recreational facilities.

3- The district acquires $400 of recreational facilities using the resources available from bonds.

4- It incurs $240 in general operating expenditures, of which it pays $170.

5- The bond indenture (agreement) requires that the district set aside funds to repay the principal of the debt. The district transfers $40 from the general fund to the fund specially created to account for the resources restricted to this purpose.

6- The repair service, which is accounted for in an internal service fund, acquires $10 of equipment, giving a long term note in exchange.

7- The repair service bills the districts other departments $15 for services provided and collected the full amount in cash. The repair service incurs cash operating expenses of $12 and $2 as depreciation.

Instructions:

1. Prepare the necessary journal entries in each fund.
2. prepare the balance sheet and the statement of revenues and expenditures in General fund only.