During its %uFB01scal year ending August 31, 2012, the

Eaton School District engaged in the following

transactions:

It established a purchasing department, to be

accounted for in a new internal service fund to

purchase supplies and distribute them to oper-

ating units. To provide working capital for the

new department, it transferred $1.7 million from

its general fund to the internal service fund.

During the year, operating departments that are

accounted for in the general fund acquired sup-

plies from the internal service fund, for which

they were billed $300,000. Of this amount, the

government transferred $200,000 from the gen-

eral fund to the internal service fund, expecting

to transfer the balance in the following %uFB01scal

year. The supplies had cost the purchasing de-

partment $190,000. During 2012, the operating

departments used only $220,000 of the supplies

for which they were billed. They had no supplies

on hand at the start of the year.

The school district transferred $150,000 from its

general fund to its debt service fund to make its

required March 31, 2012, interest payment. This

amount was paid from the debt service fund

when due. It represented interest on $8 million

of bonds that were issued, at par, on September

30, 2011. The next interest payment of$1 50,000

is due on September 30, 2012. The district also

transferred $75,000 from the general fund to the

debt service fund to provide for the eventual

repayment of principal.

The district transferred $4.5 million from the

general fund to its pension fund (a %uFB01duciary

fund) in partial payment of its actuarially re-

quired contribution of $5.0 million for the year.

On August 31 , the district acquired school buses

at a cost of $900,000. The district gave the

supplier installment notes that required the dis-

trict to make three annual payments of$361 ,903.

The %uFB01rst payment is due in August 201 3. The

buses have a useful life of 10 years, with no

salvage value.

Select an answer to the following questions from

the amounts listed after them. An amount may be

selected once, more than once, or not at all. ___ 1. Amount that the general fund should rec-

ognize as supplies expense, assuming that

inventory is accounted for on a purchases

basis.

___ 2. Amount that the district should recognize

as a pension expenditure in its general

fund

___ 3. Amount that the district should recognize

as a pension expense in its government-

wide statements

___ 4. Amount that the general fund should rec-

ognize as nonreciprocal transfers-out

___ 5. Amount that the district should recognize

as total debt service expenditures in its

governmental funds.

___ 6. Amount that the government should rec-

ognized as total debt service expense in its

government-wide statements

___ 7. Amount that the district should recognize

as other %uFB01nancing sources in its general

fund %uFB01nancial statements

___ 8. Amount that the district should recog-

nize as capital-related expenditures (in-

cluding depreciation) pertaining to its

buses in its governmental fund %uFB01nancial

statements. The district recognizes a full

year%u2019s depreciation on all capital assets in

the year of acquisition.

___ 9. Amount that the district should recognize

as capital-related expenses (including de-

preciation) pertaining to its buses in its

government-wide %uFB01nancial statements.

The district recognizes a full year%u2019s de-

preciation on all capital assets in the year

of acquisition.

___ 10. Amount that the district should recognize

as nonspendable fund balance in its gov-

ernmental fund statements.

0

b. 75,000

c. 80,000

d. 90,000

e. 137,500

f. 150,000

g. 220,000

h. 275,000 i. 300,000

j. 900,000

k. 1,925,000

l. 4,500,000

m. 5,000,000

n. 8,000,000

o. 8,900,000