During its %uFB01scal year ending August 31,2012, the
Eaton School District engaged in thefollowing
transactions:
It established a purchasing department, tobe
accounted for in a new internal service fundto
purchase supplies and distribute them tooper-
ating units. To provide working capital forthe
new department, it transferred $1.7 millionfrom
its general fund to the internal servicefund.
During the year, operating departments thatare
accounted for in the general fund acquiredsup-
plies from the internal service fund, forwhich
they were billed $300,000. Of this amount,the
government transferred $200,000 from thegen-
eral fund to the internal service fund,expecting
to transfer the balance in the following%uFB01scal
year. The supplies had cost the purchasingde-
partment $190,000. During 2012, theoperating
departments used only $220,000 of thesupplies
for which they were billed. They had nosupplies
on hand at the start of the year.
The school district transferred $150,000 fromits
general fund to its debt service fund to makeits
required March 31, 2012, interest payment.This
amount was paid from the debt service fund
when due. It represented interest on $8million
of bonds that were issued, at par, onSeptember
30, 2011. The next interest payment of$150,000
is due on September 30, 2012. The districtalso
transferred $75,000 from the general fund tothe
debt service fund to provide for theeventual
repayment of principal.
The district transferred $4.5 million fromthe
general fund to its pension fund (a%uFB01duciary
fund) in partial payment of its actuariallyre-
quired contribution of $5.0 million for theyear.
On August 31 , the district acquired schoolbuses
at a cost of $900,000. The district gavethe
supplier installment notes that required thedis-
trict to make three annual payments of$361,903.
The %uFB01rst payment is due in August 201 3.The
buses have a useful life of 10 years, withno
salvage value.
Select an answer to the following questionsfrom
the amounts listed after them. An amount maybe
selected once, more than once, or not atall. ___ 1. Amount that thegeneral fund should rec-
ognize as supplies expense, assuming that
inventory is accounted for on a purchases
basis.
___ 2. Amount that the district shouldrecognize
as a pension expenditure in its general
fund
___ 3. Amount that the district shouldrecognize
as a pension expense in its government-
wide statements
___ 4. Amount that the general fund shouldrec-
ognize as nonreciprocal transfers-out
___ 5. Amount that the district shouldrecognize
as total debt service expenditures in its
governmental funds.
___ 6. Amount that the government shouldrec-
ognized as total debt service expense inits
government-wide statements
___ 7. Amount that the district shouldrecognize
as other %uFB01nancing sources in itsgeneral
fund %uFB01nancial statements
___ 8. Amount that the district shouldrecog-
nize as capital-related expenditures (in-
cluding depreciation) pertaining to its
buses in its governmental fund%uFB01nancial
statements. The district recognizes a full
year%u2019s depreciation on all capital assetsin
the year of acquisition.
___ 9. Amount that the district shouldrecognize
as capital-related expenses (including de-
preciation) pertaining to its buses in its
government-wide %uFB01nancial statements.
The district recognizes a full year%u2019sde-
preciation on all capital assets in theyear
of acquisition.
___ 10. Amount that the district shouldrecognize
as nonspendable fund balance in its gov-
ernmental fund statements.
0
b. 75,000
c. 80,000
d. 90,000
e. 137,500
f. 150,000
g. 220,000
h.275,000 i. 300,000
j. 900,000
k. 1,925,000
l. 4,500,000
m. 5,000,000
n. 8,000,000
o. 8,900,000
