The Village of Rodale keeps its governmental fund accounting records on a modified accrual basis.At the end of the fiscal year the village accountant must covert the modified accrual information to accrual information to allow for preparation of the government-wide financial statements.Following are several transactions identified by the accountant that will require recognition and/or conversion for accrual accounting. The village has a fiscal year end of December 31.

1.During the year the village continued to pay interest on a loan that was entered into two years ago.The interest is due on April 1 of every year in the amount of $5,000.

2.On December 15 the village took out a long-term note payable in the amount of $30,000.

5.During the year the village determined that $1,000 of property taxes receivable would not be available for use within 60 days of the fiscal year end.