For Each of the Following Transactions That Could Be Introduced

question 5

Essay

For each of the following transactions that could be introduced to fund the maintenance of the city park,state the type of fund(s)that would be affected.Assume that a capital project fund will be used to handle any long-term improvements or additions to the park.
1.Resources used to make 60 monthly installments on outstanding long-term debt.
2.Implemented a tax on alcohol purchases specifically designated for the park upkeep.
3.A local sports organization that uses the park raises funds and donates the money,stating that the principal may not be spent,but designating earnings to the park upkeep.
4.City council approves the funds from existing resources for the upkeep required in the upcoming year.
5.Resources used only to pay principal and interest of debt outstanding to finance park maintenance.

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Definitions:

Cash Distribution

The allocation of funds or payment of dividends to a company's shareholders typically in the form of cash.

Bonus

An additional compensation given to employees as a reward for their performance or as part of their benefits package.

Capital Balances

signify the amount of money that stakeholders have invested in a company, often reflected in the equity or capital accounts on the balance sheet.

Market Prices

The ongoing rate for buying or selling an asset or service in a designated trading area.