Question
P9-7 (Interfund-GCA-GLTL Entries) Prepare all entries that a state or local government should make to record the following transactions and events. 9. The government pays
P9-7 (Interfund-GCA-GLTL Entries) Prepare all entries that a state or local government should make to record the following transactions and events.
9. The government pays retiree health care benefits on a pay-as-you-go basis. Payments for the year totaled $400,000. Additionally, based on actuarially determined amounts, there was a $2,800,000 increase in the total OPEB liability during 20X6. (Assume there are no adjustments related to deferred outflows or deferred inflows of resources, and none of the liability is for proprietary or fiduciary activities.)
10. Inspection services were performed (internal services) by a department financed through the General Fund for a capital project and billed to the project, $3,000.
11. Maintenance services of $1,800 (recorded earlier as CPF expenditures) were rendered by construction workers paid from a Capital Projects Fund for a department financed through the General Fund. (Record the recognition of this correction prior to payment.)
12. A 6-month loan of $400,000 to be repaid during the current year was made from the General Fund to the Debt Service Fund.
13. A 2-year loan of $2,000,000 was made from the General Fund to a Capital Projects Fund.
14. A government sold police vehicles for $65,000. The vehicles originally cost $480,000 when purchased and are 80% depreciated. The sale proceeds are unrestricted.
15. Cash payments for claims totaled $2,000,000. The fund liability for claims and judgments increased $100,000, to $225,000. The noncurrent portion of the payable decreased by $335,000.
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