Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik

Exercise 14

Cash of $90,000 is transferred from a city's General Fund to start construction on a police station.The city issues a bond at its $1.8 million face value.The police station is built for $1.89 million.Prepare all necessary journal entries for these transactions for fund and government-wide financial statements.Assume that the city does not record the commitment.What information do the government-wide financial statements present What information do the fund financial statements present