FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The nature of a transaction gives a clue as to the type of fund in which it should be recorded.
Kendal County engaged in the following transactions. For each, prepare an appropriate
- It levied and collected $1million in taxes and dedicated to the repayment of outstanding general obligation bonds.
- It billed sponsors of a charity bicycle ride $5,000 for providing police patrols during the ride.
- It recognized $60,000 of cash dividends on investments dedicated to the support of a county arts center.
- It recognized $70,000 of cash dividends on investments dedicated to scholarships for needy county residents.
- It incurred $6 million in construction costs to complete a new county jail. The new jail was funded entirely with the proceeds of long‐term bonds.
- It transferred $400,000 of unrestricted funds to an appropriate fund to be invested and eventually used to repay the principal on the long‐term jail bonds (entries in two funds required).
- It recognized
depreciation of $100,000 on equipment in a vehicle repair center that services all county departments that have motor vehicles. - It collected $30,000 in parking fees at the county‐owned garage.
- It issued $8 million in bonds to improve the city‐owned electric utility.
- It distributed $3 million in taxes collected on behalf of school districts located within the country.
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