Each transaction relates to the activities of Lancaster County.
1. General obligation bonds, due in 10 years, are issued for $5,000,000 in cash. The bonds are used to finance the building of a new community center. The total cost of the community center is $6,000,000.
2. Principal of $300,000 and interest of $50,000 are paid on general obligation debt. This debt was not used to finance capital assets.
3. Snow removal equipment is purchased by the general fund at a cost of $90,000.
4. Equipment with original cost of $400,000 is sold for $50,000. The equipment had a 5-year life when purchased, and was sold after 4 years. Straight-line depreciation is appropriate. The equipment was used in general government operations.
5. A county government collects $35,000 in property taxes to be remitted to the town.
6. Investments are made using $600,000 withheld from paychecks of county workers to finance their pension plan.
7. The investments in transaction 6 increase in value by $40,000 during the year, although the investments are not liquidated.
8. Cash of $50,000 is received from a citizen, to be held in trust and used for scholarships for local citizens to attend local universities. All amounts received are spendable.
Required
Indicate how each transaction is reported in Lancaster County's (a) fund statements, and (b) government-wide statements. Identify (i) the statement affected, (ii) the account where the item appears, and (iii) its classification if necessary. For example, assets purchased by the general fund appear as capital assets (governmental activities) on the statement of net position, and as general fund expenditures on the governmental funds statement of revenues, expenditures, and changes in fund balances. For the fund statements, assume whenever necessary that the relevant fund qualifies as a major fund.