P2-4 (Transaction Analysis) (1) Analyze the effects of each of the following transactions on each of the funds and nonfund accounts of the City of Timbuktu. (2) Indicate how each transac tion would be reported in the operating statement for each fund affected 1. Salaries and wages paid to general government employees from unrestricted resources during the year totaled $3,000,000. Salaries and wages payable at the beginning of the year totaled $50,000 and at year-end amounted to $32,000 The city issued $10,000,000 of 10-year, 8% bonds at the beginning of the year. Interest is due semiannually at the beginning of each year and at mid-year. The bonds were issued at par to provide for the construction of a new police and fire facility Indicate any accruals required at the end of the year that the bonds were issued Construction costs totaling $5,000,000 were paid during the year related to the police and fire facility. A bill from the contractor requiring an additional payment of S346,500 was received before year end but was not paid by year end. In the beginning of year 2, the city paid the bond interest due and retired $1,000,000 of bonds. Before the payments were made, an adequate amount of General Fund resources was paid to the fund from which the bond payments were made to provide for those pay ments. (Analyze both transactions.) 2. 3. 4. 5