Question 3 Not complete Marked out of 5.00 Transaction Reporting in Fund and Government-Wide Statements Each transaction relates to the activities of Lancaster County. 1. General obligation bonds, due in 20 years, are issued for $10,000,000 in cash. The bonds are used to finance the building of a new community center. The total cost of the community center is $12,000,000. 2. Principal of $500,000 and interest of $25,000 are paid on general obligation debt. This debt was not used to finance capital assets. 3. Snow removal equipment is purchased by the general fund at a cost of $150,000. 4. Equipment with original cost of $300,000 is sold for $40,000. The equipment had a 5-year life when purchased, and was sold after 4 years. The county uses straight-line depreciation when appropriate. The equipment was used in general government operations. 5. The county collects $225,000 in property taxes to be remitted to the town. 6. Investments are made using $550,000 withheld from paychecks of county workers to finance their pension plan. 7. The investments in transaction 6 increase in value by $11,000 during the year, although the investments are not liquidated. B. Cash of $200,000 is received from a citizen, to be held in trust and used for scholarships for local citizens to attend local universities. All amounts received are spendable. Required For each transaction: . Indicate the fund affected and prepare the journal entry required in the fund financial statements. . Indicate whether the transaction is considered a governmental or business-type activity in the government-wide financial statements and prepare the journal entry required in the government-wide financial statements. Instructions: 1. If an item is not reported in a fund statement and/or in the government-wide statements, select Not applicable and No entry. 2. Enter answers using all zeros (do not abbreviate to millions or to thousands). . General obligation bonds, due in 20 years, are issued for $10,000,000 in cash. The bonds are used to finance the building of a new community center. The total cost of the community center is $12,000,000. Fund financial statements: Which fund is the transaction recorded in? Description Debit Credit To record issuance of bonds O O 0 0 To record costs incurred to build the community center. Government-wide statements: Item(s) is/are reported as Description Debit Credit OO 0 To record issuance of bonds. O O To record costs incurred to build the community center. o o To recategorize net position. 2. Principal of $500,000 and interest of $25,000 are paid on general obligation debt. This debt was not used to finance capital assets. Fund financial statements:Which fund Is the transaction recorded in? Description Debit Credit Expenditures: principal 0 0 0 0 0 0 Government-wide statements: Itemts] Isiare reported as Description Debit Credit Long-term general obligation debt 0 0 0 0 D 0 3. Snow removal equipment is purchased by the general fund at a cost of $150,000. Fund nancial statements: Which fund Is the transaction recorded in? Description Debit Credit Government-wide statements: Item(s) isiare reported as Description Debit Credit 0 0 0 0 0 0 0 0 To recategonze net position. 4. Equipment with original cost of $300,000 is sold for $40,000. The equipment had a 5-year life when purchased, and was sold after 4 years. The county uses straight-line depreciation when appropriate. The equipment was used in general government operations. Fund nancial statements Which fund is the transaction recorded in? Description Debit Credit Government-wide statements: Item[s) isiare reported as Description Debit Credit Cash 0 0 D O 0 0 D 0 0 0 To recategorize net position. 5. The county collects $225,000 in property taxes to be remitted to the town. Fund financial statements: Which fund is the transaction recorded in? Description Debit Credit OO O O To collection of property taxes. O O O O To record property taxes to be remitted to the town. Government-wide statements: Item(s) is/are reported as Description Debit Credit o O O 6. Investments are made using $550,000 withheld from paychecks of county workers to finance their pension plan. Fund financial statements: Which fund is the transaction recorded in? Description Debit Credit o o O O To collection of property taxes. Government-wide statements: Item(s) is/are reported as Description Debit Credit 0 0 o o 7. The investments in transaction 6 increase in value by $11,000 during the year, although the investments are not liquidated. Fund financial statements: Which fund is the transaction recorded in? Description Debit Credit O O Government-wide statements: Item(s) is/are reported as Description Debit Credit O O o O 8. Cash of $200,000 is received from a citizen, to be held in trust and used for scholarships for local citizens to attend local universities. All amounts received are spendable.Fund financial statements: Which fund is the transaction recorded in? Description Debit Credit 0 O O O Government-wide statements: Item(s) is/are reported as Description Debit Credit o O O O
