EX$.2-6$

Typical transactions can often be identified with specific types

of funds.

A city maintains the following funds:

a$.$ General

b$.$ Special revenue

c$.$ Capital projects

d$.$ Debt service

e$.$ Enterprise

f$.$ Internal service

g$.$ Permanent $($trust$)$

h$.$ Custodial

For each of the following transactions, indicate the fund in

which each transaction would most likely be recorded:

The city collects $$3$ million of taxes on behalf of

the county in which it is located.

It spends $$4$ million to pave city streets, using the

proceeds of a city gasoline tax dedicated for road

and highway improvements.

It receives a contribution of $$5$ million. Per the

stipulation of the nor, the money is to be

invested in marketable securities$,$ and the interest

from the securities is to be used to maintain a

city park.

It collects $$800,000$ in landing fees at the city$-$

owned airport.

It earns $$200,000$ on investments set aside to

make principal payments on the city's out$-$

standing bonds. The bonds were issued to

finance improvements to the city's tunnels

and bridges.

It pays $$4$ million to a contractor for work on one

of these bridges.

It pays $$80,000$ in wages and salaries to police

officers.

It purchases from an outside supplier $$40,000$

of stationery that it will "sell" to its various

operating departments.