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).