Question

Question 1:

1. A department of a local government began operations at the beginning of the current fiscal year with $250,000 cash. During the fiscal year, the department made cash disbursements for the following: Salaries and other personnel costs, $100,000 Office rent and utilities, $24,000 . Retirement of debt principal, $10,000; payment of interest, $2.200 Purchased equipment at the beginning of the fiscal year for $30,000; the equipment is expected to last 6 yeans and have a salvage value of $6,000 . Photocopier rental, $10,500 Based on the preceding transactions, compute total annual expenditures for this department assuming it performs governmental-type activities and is accounted for in the General Fund Then compute total annual expenses for this department assuming it performs activities within an Enterprise Fund.

Answer 1

Particular	Total expenditure (General fund)	Total expenditure (Enterprise fund)
Salaries and personal costs	$100,000	$100,000
Office rent and utilities	$24,000	$24,000
Debt: Principal	$10,000
Payment of interest	$2,200	$2,200
Equipment purchased	$30,000
Depreciation expense		$4,000
Photocopier rental	$10,500	$10,500
Total	$176,700	$140,700