Transaction Analysis - Government Accounting

a. Analyze the effects of the following transactions on the accounting equations of the various funds and nonfund accounts of a state or local government. (For any borrowing transactions, reflect any necessary year-end interest accruals in your responses.)

b. Indicate how each transaction would be reported in the operating statement for each fund affected. Be sure to identify the fund and the operating statement.

--1. A government incurred and paid salaries for general government employees, $500,000.

--2. A government purchased a truck for $38,000 cash for the use of a general government department that is financed from restricted taxes that can be used only to support the department's programs.