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Ouestion 2 ( 4 marks ) ( CLO 1 , 2 , 3 ) ( Identifying transactions to the appropriate fund - relatively simple situations
Ouestion marksCLO
Identifying transactions to the appropriate fund relatively simple situations
A small village maintains a General Fund, Special Revenue Fund, Capital Projects Fund, and Internal Service Fund. State the fund or funds that would be used to record each of the following events.
a Property taxes were collected to finance the daytoday activities of the village.
b The village issued debt for the purpose of constructing a new firehouse.
c The village paid an invoice for construction of a new firehouse.
d Mechanics' salaries were paid by the Motor Pool Fund, which was established to provide a centralized location for servicing all village vehicles on a usercharge basis.
e The village paid the salaries of its police officers.
f The village received a check from the state to help finance the new firehouse.
g The village collected fees for admission to its park. The fees, established by village ordinance, must be used for beautifying and creating nature walks within the park.
h The Motor Pool Fund sent an invoice to various village agencies that used its vehicles.
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