Assume That the Fiscal Year-End for All the Transactions Below

question 5

Essay

Assume that the fiscal year-end for all the transactions below is June 30.
Transactions:
1. The General Fund paid $12 to a Special Revenue Fund to repay it for General Fund employee salaries that were inadvertently recorded as expenditures in the Special Revenue Fund.
2. The government decided to settle a lawsuit on the advice of its legal counsel. The lawsuit came about because of damage to a citizen's property caused by a garbage service employee. The garbage operation is accounted for in the General Fund. The government settled the suit for $300, paying $100 on June 1, 20X1, and $50 on August 1 for each of the next 4 fiscal years. For these types of lawsuits, the government is self-insured for the first $50 and 100% insured for the remaining payments. Because of a cash flow issue, the government borrowed $200 on a 6 month, 3% note that comes due 2 months after year-end. No money was received from the insurance company by year-end, but the total amount due was expected by August 15. Prepare all journal entries required through the end of the 20X1 fiscal year.
3. The government's employees earned $25 in compensated absences during the year. Of this amount, $10 was paid during the year and another $8 will be paid in the first 45 days of the following fiscal year. In addition, $5 due at the end of last year was paid at the beginning of this year.. Finally, $3 earned in earlier years was paid this year.
4. The actuarial amount owed to the government's OPEB Plan for the year is $20,000. Of this amount, only $5,000 - the approximate amount of retiree healthcare costs paid for the year - was paid to the plan. The balance will be paid in later years.
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, 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.

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Definitions:

Stimulus Generalization

The process by which a conditioned response is triggered by stimuli that are similar, but not identical, to the original conditioned stimulus.

Conditioned Response

A response that has been acquired through learning to a stimulus that was once neutral but has been consistently paired with an unconditioned stimulus.

Conditioned Stimulus

A stimulus which initially doesn't elicit a response but, when associated with an unconditioned stimulus, later results in a conditioned response.

Stimulus Generalization

The process in which a response to a specific stimulus becomes associated with other stimuli that are similar, leading to the same response.