Each of the following transactions relates to a city government:

Required

Identify the fund(s) affected by each of the transactions.

HINT: Answer options that include more than one fund (ex: General fund, custodial fund) will each only be used once. Some single fund answers will be used more than once.

1. Resources are accumulated from general revenues and invested for the retirement of a general bond issue maturing in ten years.

Answer Capital projects fund General fund General fund, capital projects fund, custodial fund General fund, capital projects fund, debt service fund General fund, custodial fund General fund, debt service fund General fund, pension trust fund General fund, permanent fund Internal service fund Investment trust fund Special revenue fund

2. The city receives a grant from the federal government to institute a meal delivery program for senior citizens.

Answer Capital projects fund General fund General fund, capital projects fund, custodial fund General fund, capital projects fund, debt service fund General fund, custodial fund General fund, debt service fund General fund, pension trust fund General fund, permanent fund Internal service fund Investment trust fund Special revenue fund

3. New sewer lines are installed on the south side of the city, with resources initially provided by the general fund. No debt is issued. Residents of the south side pay for the cost of the project with an additional charge on their property tax bill during each of the next ten years.

Answer Capital projects fund General fund General fund, capital projects fund, custodial fund General fund, capital projects fund, debt service fund General fund, custodial fund General fund, debt service fund General fund, pension trust fund General fund, permanent fund Internal service fund Investment trust fund Special revenue fund

4. Same as 3., except that initial financing is provided by issuing bonds. Residents pay the principal and interest on the bonds with an additional charge on their property tax bill, but the city is liable for the bond payments.

Answer Capital projects fund General fund General fund, capital projects fund, custodial fund General fund, capital projects fund, debt service fund General fund, custodial fund General fund, debt service fund General fund, pension trust fund General fund, permanent fund Internal service fund Investment trust fund Special revenue fund

5. To remedy a flooding problem, the city builds a new drainage system in the northern part of the city, financed with a general bond issue.

Answer Capital projects fund General fund General fund, capital projects fund, custodial fund General fund, capital projects fund, debt service fund General fund, custodial fund General fund, debt service fund General fund, pension trust fund General fund, permanent fund Internal service fund Investment trust fund Special revenue fund

6. The city establishes a retirement fund for its fire fighters, and sets aside 8 percent of the fire fighters wages each year. The city administers the investment of funds and the payment of benefits.

Answer Capital projects fund General fund General fund, capital projects fund, custodial fund General fund, capital projects fund, debt service fund General fund, custodial fund General fund, debt service fund General fund, pension trust fund General fund, permanent fund Internal service fund Investment trust fund Special revenue fund

7. Same as 6., except that the city pays a premium to an insurance company fully responsible for investment of funds and benefit payments.

Answer Capital projects fund General fund General fund, capital projects fund, custodial fund General fund, capital projects fund, debt service fund General fund, custodial fund General fund, debt service fund General fund, pension trust fund General fund, permanent fund Internal service fund Investment trust fund Special revenue fund

8. The city set up a data services division to handle payroll and other functions for all city agencies, for a fee.

Answer Capital projects fund General fund General fund, capital projects fund, custodial fund General fund, capital projects fund, debt service fund General fund, custodial fund General fund, debt service fund General fund, pension trust fund General fund, permanent fund Internal service fund Investment trust fund Special revenue fund

9. Fifteen new police cars are purchased, as provided in the general budget.

Answer Capital projects fund General fund General fund, capital projects fund, custodial fund General fund, capital projects fund, debt service fund General fund, custodial fund General fund, debt service fund General fund, pension trust fund General fund, permanent fund Internal service fund Investment trust fund Special revenue fund

10. Received state aid funds to be used for any of the citys general operations.

Answer Capital projects fund General fund General fund, capital projects fund, custodial fund General fund, capital projects fund, debt service fund General fund, custodial fund General fund, debt service fund General fund, pension trust fund General fund, permanent fund Internal service fund Investment trust fund Special revenue fund

11. The city deducts federal income taxes from its employees wages and periodically remits them to the federal government.

Answer Capital projects fund General fund General fund, capital projects fund, custodial fund General fund, capital projects fund, debt service fund General fund, custodial fund General fund, debt service fund General fund, pension trust fund General fund, permanent fund Internal service fund Investment trust fund Special revenue fund

12. The city receives a $3,000,000 trust from a citizen. Income from trust investments must be used to maintain the public museum.

Answer Capital projects fund General fund General fund, capital projects fund, custodial fund General fund, capital projects fund, debt service fund General fund, custodial fund General fund, debt service fund General fund, pension trust fund General fund, permanent fund Internal service fund Investment trust fund Special revenue fund

13. The city invests money received from other governments that pool their investments to increase return on excess funds invested.