Assume That the City of Fort Smith Maintains Its Books

question 34

Essay

Assume that the City of Fort Smith maintains its books and records in a manner that facilitates the preparation of fund financial statements. For each of the following events indicate in which fund(s) of the city the event would be recorded and justify your fund selection.
a. The city collected property taxes levied for the general operations of the city.
b. The city collected property taxes levied to pay principal and interest on bonds issued several years in the past to construct a new fire station.
c. The city collected property taxes levied on a specific area of the city for the purposes of providing more frequent snow removal than is enjoyed by the rest of the city.
d. The city sold bonds to finance the construction of a new city hall.
e. The city sold bonds to finance major renovations at the city-owned electric utility.
f. The city purchased a street sweeping machine.

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Definitions:

Conversion Costs

Expenses related to transforming raw materials into finished goods, typically including labor costs and manufacturing overhead.

Materials Cost

The cost of materials that are used to manufacture a product or provide a service.

Ending Work

Refers to the value of work-in-process inventory at the end of an accounting period.

Activity-Based Costing

A method in accounting that assigns costs to products or services based on the activities required to produce or deliver them.