a.

Journal entries

1.

General fund

Cash

$110
Tax revenue
$110

To record property tax revenue

2.

Capital projects fund

Cash

$ 30

Proceeds from bonds

30
To record issuance of bonds
3.

Capital project funds

Expenditure for building

Cash
25
To record construction of building

$ 25
$

The district would also have to keep a record of the $25 asset that it created.
4.

General fund

Operating expenditures
Cash
63
Accounts payable
To record operating expenditures
5.

$ 70
$
7

General fund

Transfer to debt service fund

Cash
12
To record transfer to debt service fund

$ 12
$

Debt service fund

Cash
Transfer from general fund
12
To record transfer from general fund

$ 12
$

6.

Debt service fund

Interest expenditure
Payment of principal (expenditure)
Cash
8
To record payment of interest

2
6
$

In its record of long-term debts, the district would have to note a reduction of $10.
7.

Special revenue fund

Cash

Hotel taxes
4
To record hotel taxes
Tourism expenditures
Cash
3
To record tourism expenditures
8.

3
$

Internal service fund

Cash

Transfer in from general fund

4
To record transfer from general fund

Supplies inventory
Cash
2
To record purchase of supplies

Cash

2
$

Sales revenue
1
To record sale of supplies
Cost of supplies sold
Supplies inventory
1
To record cost of supplies sold

1
$

General fund
Transfer out to internal service fund
Cash
4
To record transfer to internal service fund

4
$

Supplies expenditure
Cash
1
To record acquisition and use of supplies
b.

1
$

Combined balance sheet

Buffalo School District
Governmental Funds
Combined Balance Sheet
Special Capital
Debt
General Revenue Projects Service
Fund
Fund
Fund
Fund

Total

Assets
Cash
Totals

$30
$30

$ 1
$ 1

$ 5
$ 5

$ 4
$ 4

$40
$40

Liabilities and Fund

Balances
Accounts payable
Fund balances
Totals

$ 7
23
$30

1
$ 1

5
$ 5

4
$ 4

$ 7
33
$40

c.
Buffalo School District
Combined Statement of Revenues, Expenditures and Other Changes in Fund Balances
Governmental Funds
General
Fund
Revenues
Property taxes
Hotel taxes
Total revenues
Expenditures
Operating
Supplies
Interest
Debt repayment
Tourism
Acquisition of building
Total expenditures
Excess of revenues
over expenditures

Special
Revenue
Fund

Capital
Projects
Fund

Debt
Service
Fund

Total

$ 0

$110
4
$114

$110
$110

$ 4
$ 4

$ 0

$ 70
1
2
6
3
$ 71

$ 3

25
$25

$ 8

$ 39

$ 1

($25)

($ 8)

Other financing sources (uses)

Bond proceeds
Transfer to/from debt service fund ($12)
Transfer to internal service fund
(4)
Total other financing
sources and uses
($16)

$ 0

Net increase in fund balance

$ 1

$ 23

$30

$ 70
1
2
6
3
25
$107
$

$12

$ 30
0
(4)

$30

$12

$ 26

$ 5

$ 4

$ 33

Buffalo School District

Statement of Revenues, Expenses and Other Changes in Fund Net Assets
Internal Service Fund
Sales revenue
Cost of supplies sold
Excess of revenues over expenses
Transfer from general fund
Increase in net assets

$1
1
$0
4
$4

Buffalo School District

Statement of Activities
Revenues
Property taxes
Hotel taxes
Total revenues
Expenses
Operating
Supplies
Interest
Depreciation
Tourism
Total expenses

$110
4
$114
$ 70
1
2
1
3
$ 77

Increase in net assets

$ 37
Buffalo School District
Statement of Net Assets

Assets
Cash
Supplies inventory
Building (net of $1 accumulated depreciation)
Total assets
Liabilities and Net Assets
Accounts payable
Bonds payable
Net assets
Restricted for acquisition of capital assets
Restricted for payment of bonds
Restricted for promoting tourism
Unrestricted
Total liabilities and net assets

$43
1
24
$68
$ 7
24
$ 5
4
1
27

37
$68