Transaction Reporting in Fund and Government Wide Statements Each transaction relates to the activities of Lancaster County 1 General obligation bonds, due in 20 years, are issued for $10,000,000 in cash The bonds are used to finance the building of a new community center The total cost of the community center is $12,000,000 2 Principal of $500,000 and interest of $25,000 are paid on general obligation debt This debt was not used to finance capital assets 3 Snow removal equipment is purchased by the general fund at a cost of $150,000 4 Equipment with original cost of $300,000 is sold for $40,000 The equipment had a 5 year life when purchased, and was sold after 4 years The county uses straight line depreciation when appropriate The equipment was used in general government operations 5 The county collects $225,000 in property taxes to be remitted to the town 6 Investments are made using $550,000 withheld from paychecks of county workers to finance their pension plan 7 The investments in transaction 6 increase in value by $11,000 during the year, although the investments are not liquidated 8 Cash of $200,000 is received from a citizen, to be held in trust and used for scholarships for local citizens to attend local universities All amounts received are spendable Required For each transaction Indicate the fund affected and prepare the journal entry required in the fund financial statements Indicate whether the transaction is considered a governmental or business type activity in the government wide financial statements and prepare the journal entry required in the government wide financial statements Instructions If an item is not reported in a fund statement and or in the government wide statements, select Not applicable and No entry Enter answers using all zeros (do not abbreviate to millions or to thousands) 1 General obligation bonds, due in 20 years, are issued for $10,000,000 in cash The bonds are used to finance the building of a new community center The total cost of the community center is $12,000,000 Fund financial statements Which fund is the transaction recorded in Answer Description Debit Credit Answer Answer Answer Answer Answer Answer To record issuance of bonds Answer Answer Answer Answer Answer Answer To record costs incurred to build the community center Government wide statements Item(s) is are reported as Answer Description Debit Credit Answer Answer Answer Answer Answer Answer To record issuance of bonds Answer Answer Answer Answer Answer Answer To record costs incurred to build the community center Answer Answer Answer Answer Answer Answer To recategorize net position 2 Principal of $500,000 and interest of $25,000 are paid on general obligation debt This debt was not used to finance capital assets Fund financial statements Which fund is the transaction recorded in Answer Description Debit Credit Expenditures principal Answer Answer Answer Answer Answer Answer Answer Answer Government wide statements Item(s) is are reported as Answer Description Debit Credit Long term general obligation debt Answer Answer Answer Answer Answer Answer Answer Answer 3 Snow removal equipment is purchased by the general fund at a cost of $150,000 Fund financial statements Which fund is the transaction recorded in Answer Description Debit Credit Answer Answer Answer Answer Answer Answer Government wide statements Item(s) is are reported as Answer Description Debit Credit Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer To recategorize net position 4 Equipment with original cost of $300,000 is sold for $40,000 The equipment had a 5 year life when purchased, and was sold after 4 years The county uses straight line depreciation when appropriate The equipment was used in general government operations Fund financial statements Which fund is the transaction recorded in Answer Description Debit Credit Answer Answer Answer Answer Answer Answer Government wide statements Item(s) is are reported as Answer Description Debit Credit Cash Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer Answer To recategorize net position 5 The county collects $225,000 in property taxes to be remitted to the town Fund financial statements Which fund is the transaction recorded in Answer Description Debit Credit Answer Answer Answer Answer Answer Answer To collection of property taxes Answer Answer Answer Answer Answer Answer To record property taxes to be remitted to the town Government wide statements Item(s) is are reported as Answer Description Debit Credit Answer Answer Answer Answer Answer Answer 6 Investments are made using $550,000 withheld from paychecks of county workers to finance their pension plan Fund financial statements Which fund is the transaction recorded in Answer Description Debit Credit Answer Answer Answer Answer Answer Answer To collection of property taxes Government wide statements Item(s) is are reported as Answer Description Debit Credit Answer Answer Answer Answer Answer Answer 7 The investments in transaction 6 increase in value by $11,000 during the year, although the investments are not liquidated Fund financial statements Which fund is the transaction recorded in Answer Description Debit Credit Answer Answer Answer Answer Answer Answer Government wide statements Item(s) is are reported as Answer Description Debit Credit Answer Answer Answer Answer Answer Answer 8 Cash of $200,000 is received from a citizen, to be held in trust and used for scholarships for local citizens to attend local universities All amounts received are spendable Fund financial statements Which fund is the transaction recorded in Answer Description Debit Credit Answer Answer Answer Answer Answer Answer Government wide statements Item(s) is are reported as Answer

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 14, 2024

Transaction Reporting in Fund and Government-Wide Statements Each transaction relates to the activities of Lancaster County. 1. General obligation bonds, due in 20 years, are

Transaction Reporting in Fund and Government-Wide Statements

Each transaction relates to the activities of Lancaster County.

1. General obligation bonds, due in 20 years, are issued for $10,000,000 in cash. The bonds are used to finance the building of a new community center. The total cost of the community center is $12,000,000.

2. Principal of $500,000 and interest of $25,000 are paid on general obligation debt. This debt was not used to finance capital assets.

3. Snow removal equipment is purchased by the general fund at a cost of $150,000.

4. Equipment with original cost of $300,000 is sold for $40,000. The equipment had a 5-year life when purchased, and was sold after 4 years. The county uses straight-line depreciation when appropriate. The equipment was used in general government operations.

5. The county collects $225,000 in property taxes to be remitted to the town.

6. Investments are made using $550,000 withheld from paychecks of county workers to finance their pension plan.

7. The investments in transaction 6 increase in value by $11,000 during the year, although the investments are not liquidated.

8. Cash of $200,000 is received from a citizen, to be held in trust and used for scholarships for local citizens to attend local universities. All amounts received are spendable.

Required

For each transaction:

Indicate the fund affected and prepare the journal entry required in the fund financial statements.
Indicate whether the transaction is considered a governmental or business-type activity in the government-wide financial statements and prepare the journal entry required in the government-wide financial statements.

Instructions:

If an item is not reported in a fund statement and/or in the government-wide statements, select Not applicable and No entry.
Enter answers using all zeros (do not abbreviate to millions or to thousands).

Fund financial statements:

Which fund is the transaction recorded in?

Answer

Description		Debit	Credit
Answer

	Answer	Answer
Answer

	Answer	Answer
To record issuance of bonds.
Answer

	Answer	Answer
Answer

	Answer	Answer
To record costs incurred to build the community center.

Government-wide statements:

Item(s) is/are reported as Answer

Description		Debit	Credit
Answer

	Answer	Answer
Answer

	Answer	Answer
To record issuance of bonds.
Answer

	Answer	Answer
Answer

	Answer	Answer
To record costs incurred to build the community center.
Answer

	Answer	Answer
Answer

	Answer	Answer
To recategorize net position.

2. Principal of $500,000 and interest of $25,000 are paid on general obligation debt. This debt was not used to finance capital assets.

Fund financial statements:

Which fund is the transaction recorded in?

Answer

Description		Debit	Credit
Expenditures: principal		Answer	Answer
Answer

	Answer	Answer
Answer

Answer

Government-wide statements:

Item(s) is/are reported as Answer

Description		Debit	Credit
Long-term general obligation debt		Answer	Answer
Answer

	Answer	Answer
Answer

Answer

3. Snow removal equipment is purchased by the general fund at a cost of $150,000.

Fund financial statements:

Which fund is the transaction recorded in?

Answer

Description		Debit	Credit
Answer

	Answer	Answer
Answer

Answer

Government-wide statements:

Item(s) is/are reported as Answer

Description		Debit	Credit
Answer

	Answer	Answer
Answer

	Answer	Answer
Answer

	Answer	Answer
Answer

	Answer	Answer
To recategorize net position.

Fund financial statements

Which fund is the transaction recorded in?

Answer

Description		Debit	Credit
Answer

	Answer	Answer
Answer

Answer

Government-wide statements:

Item(s) is/are reported as Answer

Description		Debit	Credit
Cash		Answer	Answer
Answer

	Answer	Answer
Answer

	Answer	Answer
Answer

	Answer	Answer
Answer

	Answer	Answer
To recategorize net position.

5. The county collects $225,000 in property taxes to be remitted to the town.

Fund financial statements:

Which fund is the transaction recorded in?

Answer

Description		Debit	Credit
Answer

	Answer	Answer
Answer

	Answer	Answer
To collection of property taxes.
Answer

	Answer	Answer
Answer

	Answer	Answer
To record property taxes to be remitted to the town.

Government-wide statements:

Item(s) is/are reported as Answer

Description		Debit	Credit
Answer

	Answer	Answer
Answer

Answer

6. Investments are made using $550,000 withheld from paychecks of county workers to finance their pension plan.

Fund financial statements:

Which fund is the transaction recorded in?

Answer

Description		Debit	Credit
Answer

	Answer	Answer
Answer

	Answer	Answer
To collection of property taxes.

Government-wide statements:

Item(s) is/are reported as Answer

Description		Debit	Credit
Answer

	Answer	Answer
Answer

Answer

7. The investments in transaction 6 increase in value by $11,000 during the year, although the investments are not liquidated.

Fund financial statements:

Which fund is the transaction recorded in?

Answer

Description		Debit	Credit
Answer

	Answer	Answer
Answer

Answer

Government-wide statements:

Item(s) is/are reported as Answer

Description		Debit	Credit
Answer

	Answer	Answer
Answer

Answer

8. Cash of $200,000 is received from a citizen, to be held in trust and used for scholarships for local citizens to attend local universities. All amounts received are spendable.

Fund financial statements:

Which fund is the transaction recorded in?

Answer