1. The following transactions take place: A commitment was made to transfer general revenues to the entity in charge of providing transportation for all government agencies. Construction bonds were issued at a premium. The premium is to be included in funds accumulated to retire the debt. Police salaries were paid. Interest and principal were paid on general obligation serial bonds. Required: Indicate the name of the fund(s) in which each of the transactions or events should be recorded.

2. Tom and Julie formed a management consulting partnership on January 1, 2008. The fair value of the net assets invested by each partner follows:

	Tom	Julie
Cash	$13,000	$12,000
Accounts receivable	8,000	6,000
Office supplies	2,000	800
Office equipment	30,000	-----
Land	-----	30,000
Account payable	2,000	5,000
Mortgage payable	----	18,800

During the year, Tom withdrew $15,000 and Julie withdrew $12,000 in anticipation of operating profits. Net profit for 2008 was $50,000, which is to be allocated based on the original net capital investment. Journal Entries to: (1) Record the initial investment in the partnership. (2) Record the withdrawals. (3) Close the Income Summary and Drawing accounts. (4) Prepare a statement of changes in partners' capital for the year ended December 31, 2008.

3. Mane Company operates in five identifiable segments, V, W, X, Y, and Z. During the past year, sales to unaffiliated customers and intersegment sales for each segment were as follows:

Segment	Sales to Nonaffiliates	Intersegment Sales	Total Sales
V	$2,000	$400	$2,400
W	280	20	300
X	100	600	700
Y	1,100	-0-	1,100
Z	350	25	375
Total	$3830	$1,045	$4,875

Required: Applying the revenue test, determine which of the segments are reportable segments.

4. Indicate whether each of the following is true or false. If an answer is false, explain why. ______ 1. Insolvency means that a debtor has more current liabilities than current assets. ______ 2. Voluntary bankruptcy petitions may be filed under either Chapter 7 or Chapter 11 of the Reform Act. ______3. If an insolvent debtor has more than 12 creditors, an involuntary petition must be signed by at least three of those creditors. ______4. Unsecured creditors with priority will receive full satisfaction before secured creditors are paid. ______5. Either a debtor or its creditors may file a petition for reorganization under Chapter 11 of the Reform Act. ______6. In a reorganization involving a transfer of assets, the debtor will recognize a gain on restructuring measured by the excess of the carrying value of the payable settled over the book value of the assets transferred. ______7. Restructuring gains that arise from troubled debt restructurings are reported by the debtor as extraordinary gains. ______8. The statement of affairs is a report designed to estimate the amount expected to be earned by a debtor company during the time period needed to complete a reorganization.