BONUS ( 15 Points)DO EITHER A ORB

BONUS B

Analyze the effects of the following transactions, including year-end interest accruals, on all the funds and nonfund accounts of a state or local government.Also, indicate how each transaction would be reported in the operating statements of the various funds that are affected.

1.SLG purchased an automobile for a general government department.SLG paid $5,000 down and issued a $35,000, 8% note to the vendor for the balance of the cost of the automobile.The purchase occurred at mid-year and the note is a 1-year note.The note is considered a fund liability.

2.SLF transferred general fund resources ($2,000,000) to a fund to be used to account for a new central data processing department that will provide data processing services to all departments on a cost-reimbursement basis.

3.The city sold general capital assets (Land) with an original cost of $30,000 for $300,000.The use of the resources received is not restricted.