Typical transactions can often be identi"ed with speci"c types of funds. A city maintains the following funds:

1. General

2. Special revenue

3. Capital projects

4. Debt service

5. Enterprise

6. Internal service

7. Permanent (trust)

8. Custodial

For each of the following transactions, indicate the fund in which each transaction would most likely be recorded:

a. The city collects $3 million of taxes on behalf of the county in which it is located.

b. It spends $4 million to pave city streets, using the proceeds of a city gasoline tax dedicated for road and highway improvements.

c. It receives a contribution of $5 million. Per the stipulation of the donor, the money is to be invested in marketable securities, and the interest from the securities is to be used to maintain a city park.

d. It collects $800,000 in landing fees at the city-owned airport.

e. It earns $200,000 on investments set aside to make principal payments on the citys outstanding bonds. The bonds were issued to "nance improvements to the citys tunnels and bridges.

f. It pays $4 million to a contractor for work on one of these bridges.

g. It pays $80,000 in wages and salaries to police of"cers.

h. It purchases from an outside supplier $40,000 of stationery that it will sell to its various operating departments.