The City maintains its books and records in a manner that facilitates the preparation of the financial statements of the fund. The city maintains a general fund, a capital projects fund, and a special revenues fund. After studying the transactions in which the city participated, record each of these based on: a) the fund financial statement and identifies the fund into which the entry is made, and b) in governmental activities (goverment-wide financial statements)

6. During the year city employees earned $10 million in wages. At the end of the year, employees had been paid all but $1 million. 7. During the year, the city purchased $500,000 worth of materials and supplies. 8. The city paid $360,000 for a three-year insurance policy to cover some assets used in general government activities. 9. The city purchased four trucks for general government activities. The trucks cost $100,000 in total. 10. At the beginning of the year, the city leased some office equipment for use in the administrative offices. The lease qualified as a capital lease. The present value of the minimum lease payments is $96,000.

Fund Financial Statement Government-Wide financial Statement

Type of fund Type of fund