Response to the following problem:
Analyze the effects of each of the following transactions on each of the funds and/or the nonfund accounts of the city of Nancy. Identify the fund that typically would be used to record the transaction.
Indicate how each transaction would be reported in the operating statement for each fund affected. Example:cash received for licenses during 2011, $8000 Solution.
a.) FA - RL = FB GCA - GLTL = NP $8000 $8000
b.) Revenues of $8000 are reported in the General Fund statement of revenues, expenditures and changes in fund balances.
Now the questions.
1. The city paid $5,000,000 to the office building contractor for work done during fiscal year.
2. The city purchased several pc's by issuing a $60000, 6%, 6month note to the vendor, due march 1st next year.
3. General fund resources of $8,000,000 were paid to a newly established airport enterprise fund to provide initial start-up cost.
4. City sold general capital assets with an original cost of $50000 and a $1000 book value for $1500, there are no restrictions on the use of money.