During the year ended December 31, 2020, the Village of Brexitville had the following transactions:

1. Purchased equipment at the beginning of 2020 for $60,000; the equipment is expected to last 6 years and have a salvage value of $3,000;
2. Paid $35,000 to the federal government representing the Village’s payroll taxes for FICA and Medicare;
3. Retired debt principal of $40,000; paid interest of $1,200;
4. Paid $1,200 on a lease contract to Xerox at the end of December for using office copy machines in November and December;
5. Received a bill for $800 on January 2, 2021, from Commonwealth Edison for electricity used in November and December, 2020.

Based on the preceding transactions, compute total expenditures for the local government assuming transactions A, B, D, and E are recorded in the general fund, and transaction C is recorded in a debt service fund.

Then compute total expenses for the government assuming all transactions are recorded in the water utility enterprise fund.

The Village uses straight-line depreciation

Item	General     Fund	Debt Service           Fund	Enterprise         Fund
Equipment
Payroll taxes
Debt principal
Interest
Lease of copy machines
Electricity bill
Depreciation
Total expenditures/expenses	$	$	$

Answer rating: 100% (QA)

Solution Ans S no General Fund Debt Service Fund E... View the full answer