a. Analyze the effects of the following transactions on the accounting equations of the various funds and nonfund accounts of the Humble (Texas) Independent School District.
(Reflect any necessary year-end interest accruals in your responses.)
b. Indicate how the school district should report each transaction in the operating statement for each fund affected. Be sure to identify the fund and the operating statement.
1. Salaries paid to teachers and other instructional staff during the year ended 20X6 totaled $67,000,000. Salaries payable increased $1,240,000 during the fiscal year.
2. Property taxes of $135,000,000 were levied by the school district for the fiscal year:
$1,890,000 of the levy is expected to be uncollectible; $130,500,000 of the 20X6 levy was collected by the end of the fiscal year. There were no collections of 20X6 or earlier years’ taxes during the first 60 days of the next fiscal year.
3. The school district issued $121,750,000 of construction bonds in 20X6 to provide the financing for general government capital projects.
4. The school district was billed $81,218,000 by contractors for work performed on the district’s capital projects. All but $12,400,000 was paid by year end.
5. The school district incurred and paid maintenance costs of $17,600,000 during the year.
6. The school district incurred expenditures for regional day school programs and private residential placements for the deaf and hearing-impaired. These costs were paid from monies received from federal grants restricted to finance such programs. The total costs incurred and the grant collections from the federal government were $690,000.
7. The school district transferred $6,077,000 of General Fund resources to the fund used to service the district’s general obligation bonds.
8. Bond principal of $1,400,000 and interest of $6,000,000 were paid on general government bonds.
(Based on a recent Comprehensive Annual Financial Report of the Humble Independent School District, Humble, Texas.)