Following are some of Shining Starrs, a small village, during the calendar year June 1, 2021-July 31, 2022. For each transaction, state (a) the amount the village would report as expenditures for the year 2021 if the transaction occurred in a governmental-type fund and (b) the amount it would report if the transaction occurred in an Enterprise Fund.

1. Bought software, games, books worth $270,000, $180,000 in cash and $90,000 on account on 11/1/2021. If governmental, you will use the purchase method. You will make monthly payments at the beginning of the month(starting in Nov. 1, 2021) for 12 months at 5% interest ($7704.67 each month).

Month	Interest	Principal	Amount owing 90,000
November 2021	375.00	7,329.67	82,670.33
December 2021	344.46	7,360.21	75,310.12
January 2022	313.79	7,390.88	67,919.25
February 2022	283.00	7,421.67	60,496.57
March 2022	252.07	7,452.60	53,043.97
April 2022	221.02	7,483.65	45,560.32
May 2022	189.84	7,514.83	38,045.48
June 2022	158.53	7,546.14	30,499.34
July 2022	127.08	7,577.59	22,921.75
August 2022	95.51	7,609.16	15,312.72
September 2022	63.81	7,640.86	7,671.72
October 2022	31.97	7,672.74	0

(Hint: Just because you buy inventory, is it an expense? Expenditure? Next, think of accounts payable in terms of when you intend to pay it. Use the chart above to determine principal and interest each month. Remember how far into next year expenses can be made and still count towards the current years expenses.)

2. Distributed $152,000 in software, games, and books to needy children over the course of the year.

3. Salaries and other personnel costs, $415,000

4. Rent $24,000

5. Office supplies, paid for with cash and used, $25,700

6. Fundraising costs for fieldtrips, $600, paid for with cash.

7. Capital outlay: truck to deliver books purchased on January 1, 2022, $42,000, expected to last 10 years with salvage value of $7,000. Paid with cash.

8. Utilities, $3,800.

Question 1: Compute for Shining Starrs, for the year ended July 31, 2022, its total expenses and expenditures. Use the straight-line method for any depreciation.

	Expenses	Expenditures
Purchase of Software, games, and books
Interest Costs
Principal Repayment
Use of software, games, and books
Salaries and other personnel costs
Rent
Office supplies costs
Fundraising costs
Capital Outlay
Depreciation
Utilities Cost
Total