E $19-7$

Transaction analysis$-$governmental funds

Use transaction analysis to determine the effects of each of the following transactions in the general fund.

Salaries paid totaled $$30,000.$ Additional salaries incurred, but not paid, totaled $$2,500.$

Levied property taxes of $$100,000$;$$98,000$ was collected during the year. The balance is expected to be uncollectible.

Borrowed $$60,000$ by issuing a nine$-$month note bearing interest at $7$ percent.

Repaid the note plus interest when due.

Borrowed $$600,000$ by issuing bonds at par. The bonds mature in $10$ years.

Purchased equipment costing $$25,000$ with cash.

Sold equipment at the end of its expected useful life. The equipment had no expected residual value when acquired $($at a cost of $$13,000),$ but it sold for $$1,200.$

Determined that it is probable that a lawsuit involving a claim against a department will result in a settlement of at least $$50,000.$ However, it is not expected that any payments will be required for two years or more.