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