(A)analyze the effect of each transactions on the accounting equation of each fund or nonfund accounts affected by the transactions. (reflect any interest accruals that the county would be require to make at year end).

(B) indicate how each transaction would be reporting in the operating statement of each fund affected by the transactions

Example: the city paid utilities totaling $60,000 For the current month for its general fund.

Example solution:

General fundFinancial assets-60,000 Related Liabilities Fund Balance-60,000 statement of revenues, Expenditures and charges in fund balance Expenditures of 60,000

1.salaries paid to city's general government employees total 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 purchase transmission equipment during the year at cost of 5,000,000. one million dollars was paid on cash and the government barrowed 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 depreciation residual value. The purchase occurred at the begging of the year.

4. Benton county issued 8,000,000 of ten years 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 semiannually.

5.benton county paid 3,200,000. During the year to the contractor for the project in transaction 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.