A city maintains the following funds:
1. General
2. Special revenue
3. Capital projects
4. Debt service
5. Enterprise
6. Internal service
7. Permanent (trust)
8. Agency
For each of the following transactions, indicate the fund in which each transaction would most likely be recorded:
a. The city collects $3 million of taxes on behalf of the county in which it is located.
b. It spends $4 million to pave city streets, using the proceeds of a city gasoline tax dedicated for road and highway improvements.
c. Itreceivesacontributionof$5million.Perthestipulation of the donor, the money is to be invested in marketable securities, and the interest from the securities is to be used to maintain a city park.
d. Itcollects$800,000inlandingfeesatthecity-owned airport.
e. It earns $200,000 on investments set aside to make principal payments on the city’s outstanding bonds. The bonds were issued to finance improvements to the city’s tunnels and bridges.
f. It pays $4 million to a contractor for work on one of these bridges.
g. It pays $80,000 in wages and salaries to police officers.
h. It purchases from an outside supplier $40,000 of stationery that it will ‘‘sell’’ to its various operating departments.

  • CreatedAugust 13, 2014
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