Problem 4: Matching transactions with funds

Indicate which fund or funds would be used by the State of Illinois to record each of the following events. Use the codes shown below (remember, some events affect more than one fund):

General Fund GF Pension Trust Fund PTF

Special Revenue Fund SRF Investment Trust Fund ITF

Debt Service Fund DSF Custodial Fund CF

Capital Projects Fund CPF Internal Service Fund ISF

Enterprise Fund EF

A. The State purchased 10 police cars for the State Police at a cost of $300,000, using resources of the States major operating fund.

B. The State sold $55 million of general obligation serial bonds to finance a new highway construction program. The debt proceeds were deposited in the fund responsible for highway construction.

C. A payment was made to the contractors involved in constructing State highways.

D. Income tax revenues were deposited in the fund responsible for the payment of the general obligation serial bonds issued for State highway construction.

E. The State paid interest and principal on the general obligation serial bonds issued to finance the construction of State highways.

F. The State collected gasoline taxes, which in accordance with State law, are legally restricted for the maintenance of State roads and highways.

G. The State collected State-enacted gasoline taxes at the rate of $.38 a gallon. 45% of the gasoline taxes were deposited in the fund used to maintain state roads and highways, and 55% of the gasoline taxes were deposited in a fund that will remit the gasoline taxes to local governments in Illinois.

H. The State received a $15 million grant from the federal government for the federal governments share of the costs of the new State highway construction program in transaction 2.

I. The State office of general services performs centralized printing services for all State agencies, and bills the State agencies at cost for each printing project. The office of general services sent a bill to the State Comptroller for printing the State's annual financial report.

J. The Office of the State Lottery sells lottery tickets to the public. In accordance with State law, 5% of all lottery ticket revenue must be used to finance k-12 public education. The States major operating fund received a check from the Office of the State Lottery for the States share of the lottery ticket revenue.

K. The State paid the regular bi-weekly payroll for (1) employees who work for the States major operating fund and (2) employees who maintain the States roads and highways referred to in transaction F.

L. The State operates a fund that receives monthly resources from the 102 county governments in the State. The State invests the funds and sends quarterly checks to the county governments from the interest and dividends earned on the investments in the fund.

M. The State Employees Retirement System received $10,000,000 from the States major operating fund. The State Employees Retirement System invested the $10,000,000 in U.S. Treasury notes.