Question: (Identification of activities with funds and identifying funds with the appropriate measurement focus and basis of accounting) Jasmin City is a small city on the Canadian border of the United States. Because of its colorful history and fine restaurants, it is a tourist destination. Jasmin uses separate funds to account for the following activities. For each of the activities listed, state
(a) the type of fund that Jasmin City will use,
(b) the measurement focus and basis of accounting of each fund, and
(c) the fund-level financial statements required for each fund.
1. The city's day-to-day operating activities.
2. Sources of financing and expenditures related to the construction of an office building.
3. Payment of debt service on long-term bonds issued to build the office building.
4. A central activity that acquires supplies and sells them to the various city agencies.
5. A city-owned utility that buys and sells electricity to its residents.
6. A fund that accumulates resources to pay pensions to city employees.
7. An activity that invests funds on behalf of two small neighboring cities.
8. Disposition of sales taxes collected by the city on behalf of the county where it is located.