$\underline{\text{ Transactions: }}$ 1 a Loan of $50 Was Made from the General

question 29

Essay

$\underline{\text{ Transactions: }}$
1. A loan of $50 was made from the General Fund to the Gasoline Tax Fund (GTF), which is accounted for as a Special Revenue Fund. The loan will be repaid in five years.
2. The General Fund loaned $320 to the Capital Projects Fund (CPF #9)-to be repaid in 90 days.
$\underline{\text{ Requirement: }}$ Prepare the general journal entries using standard fund-type terminology, identifying the fund or nonfund accounts for which the entry is being prepared. Appropriate abbreviations are acceptable (e.g., GF, SRF, CPF, DSF, GCA, GLTL, OFS, or OFU). If no entry is required, write "No Entry Required" and briefly explain why. Do not include formal entry explanations or dates, but include any important assumptions made and all calculations.

---

Definitions:

Indifference Schedule

A representation of combinations of two goods between which a consumer is indifferent because they provide the same level of utility.

Substitution

The act of replacing one item with another, often referring to the economic principle where consumers switch between similar goods in response to changes in price or income.

Indifference Curve

A graph representing combinations of two goods between which a consumer is indifferent, showing preferences and trade-offs.

Total Utility

The total satisfaction received from consuming a certain amount of a good or service.