1-9. For each of the items below, identify which fund(s) would be used to accoun
ID: 1171689 • Letter: 1
Question
1-9. For each of the items below, identify which fund(s) would be used to account a. A city government issued general obligation bonds to finance the con- b. A tax of $1.00 per residential phone number is collected by a city govern- for the item and provide a justification for your answer. struction of a new jail. ment from the phone company. This amount is required by state law to be c. A county government expended $1 million to expand the water treatment d. A donor provided investments totaling $4 million to create an endow- e. A donor provided $50,000 to be used to purchase newspaper and maga used for the operation of the 911 emergency phone system plant. ment, the earnings of which will be used to provide scholarships. zine subscriptions for the public library. There is no requirement that the original principal may not be spent. f A city government sold surplus street maintenance trucks for $10,000. g. A city government contributed $500,000 to a pension plan administered by the city for its teachers, public safety employees, and employees of the water department.Explanation / Answer
Serial no. Fund account Justification a Governmental Debt service funds It is also called sinking fund that Government. Reserve is established for interest and principal payment b Enterprise funds This is proprietary fund for phone service c Capital project funds This fund is used for some special projects d Permanent funds In this fund, earnings only are allowed to be used. e Debt service funds In this fund, principal and earnings both can be used f General funds No fund specifies the sale of capital assets. g Pension and employees benefit funds (Fiduciary fund) In this fund, Government is acting as trustee.
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