Advanced Accounting 11th Edition by Paul Fischer,William Tayler, Rita Cheng

Exercise 8

Bonds, various funds/groups. During 2019, Kansas City issued bonds for financing the construction of a civic center and bonds for financing improvements in the environmental controls for its water and sewer enterprise. The latter bonds require a sinking fund for their retirement. Items (1) through (4) represent items Kansas City should report in its 2019 financial statements.
Determine in which of the following funds and account groups [(a) through (f )] each item [(1) through (4)] would be included:
a. General fund.
b. Enterprise funds.
c. Capital projects funds.
d. Debt service funds.
e. General fixed assets account group.
f. General long-term debt account group.
1. Bonds payable.
2. Accumulated depreciation.
3. Amounts identified for the repayment of the two bond issues.
4. Fund balance-assigned for encumbrances.