Question

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