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The Following Are Transactions for the City of Salem

question 2

Essay

The following are transactions for the city of Salem.
a.Incurred salaries of $44,000 to be paid next month.
b.Tax bills totaling $500,000 mailed to city residents.
c.Paid salaries above.
d.Computer equipment received in the amount of $11,000,to be paid in 30 days.
Required:
Analyze the above transactions by using the accounting equation for a governmental fund.


Definitions:

December 31

December 31 refers to the final day of the year in the Gregorian calendar, often associated with closing financial and business accounts for the year.

Credit Balance

A situation where the sum of credits in an account exceeds the sum of debits, often indicating a liability or revenue.

Unearned Revenue

Prepayment for goods or services which have not yet been delivered or performed, recognized as a liability on the balance sheet until the goods or services are delivered.

Sales Revenue

The sum of revenue from the sale of products or services that are fundamental to a company's main business activities.

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