A New Truck Was Ordered for the Sanitation Department at a Cost

question 68

Essay

A new truck was ordered for the sanitation department at a cost of $122,200 on September 3, 2011.
Required:
(A.) Prepare the required journal entry in the General Fund for the Fund Financial Statements.
(B.) Prepare the required journal entry for the Government-Wide Financial Statements.

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Definitions:

Transfer Payments

Payments made by governments to individuals without any expectation of a direct return or exchange, such as welfare benefits or social security.

Government Spending

Expenditures made by the government in any given period, including on services, salaries, and infrastructure projects.

Economic Role

The functions and responsibilities that different entities (individuals, firms, governments) play in the economy.

Government

The governing body of a nation, state, or community which makes and enforces laws, policies, and regulations.