1. According to GASB Statement number 34, governmental funds stand for:

a. Activities that provide citizens with services financed by taxes and intergovernmental grants

b. Activities that specifically relate to revenue recognition

c. Activities that related specifically to expenditures

d. Activities that specifically relate to reporting periods

2. Assume a budget for City has been approved and the following information is available:

-Estimated inflow from revenue $900,000

-Estimated inflow from general long-term debt 100,000

-Transfer from other funds 250,000

-Sales of fixed assets 300,000

-Estimated outflows expenditures 1,200,000

-Transfer to other funds 370,000

Record the journal entries