The following applies to Q #21, 22. Several years ago, Grant County was sued by a former the county, at the time of the lawsuit county employee for wrongful discharge. Although it was to be contested by it the atormeys believed that the county was most likely to lose the suit and the estimated amount the county was of the ultimate judgment would be $100,000. This year, the case was finally setled with a judgment against the cousty of S1S0,000, which was paid. 21. Assuming that the county maintains its books and records in a manner to facilitate the preparation of its fund financial statements, Financial statement impact for the current year should be a) b) c) d) Increase Expenditures S150,000; Decrease Cash $150,000 Increase Expenses $150,000; Decrease Cash $150,000 Increase Expenditures $50,000 and Claims payable $100,000: Decrease Cash S150,000. Increase Expenses $50,000 and Claims payable $100,000; Decrease Cash $150.000. 22. Assuming that the county maintains its books and records in a manner to facilitate the preparation of its goveramest-wide Financial statement impact for the current year should be a) Increase Expenditures $150,000, Decrease Cash $150,000 b) Increase Expenses $150,000; Decrease Cash $150,000. c) Increase Expenditures $50,000 and Claims payable $100,000, Decrease Cash $150,000. Increase Expenses SSO,000. Decrease Claims payable S 100,000 and Cash S 15000 23. The following activities would be classified as a nonreciprocal interfund activity except a) Cash transfer from the general fund to a debt service fund to pay for principal and interest on long-term debt b) Transfer from a capital projects fund to the general fund to reimburse the general fund for its payment of the architect's fee related to new construction c) Purchase of supplies by the general fund from an internal service fund d) Transfer of funds from the general fund to establish a new internal service fund