Answer Happy

Identify transactions to specific funds
• Capital projects fund
• Debt service fund
• Enterprise fund
• General fund
• Internal service fund
• Permanent fund
• Special Revenue fund
• Enterprise fund and General fund
• Internal Service Fund and General fund
For each of the following situations, indicate which fund would
be used to report the transaction. (Note: Several transactions
require using more than one fund.)
1. A city-owned water utility sent bills to the city for water
provided to city departments.
2. The city’s mass transit facility received an operating
subsidy from the city and a construction grant from the federal
government.
3. The city sent out property tax bills to finance day-to-day
city operating activities.
4. The city sold bonds to construct new roads—a major capital
project.
5. The city used tax resources to pay for new police cars. (The
city classifies the purchase of all cars as “minor capital items,”
to be paid from tax resources rather than the sale of bonds.)
6. The city paid principal and interest on a bond issue from
resources accumulated for that purpose.
7. The city’s centralized printing facility billed the city’s
Tax Department for printing tax forms.
8. The city levied a special hotel tax dedicated to beautifying
its downtown shopping area.