Below are transactions and other financial information for a county government.
1) The county's general administrative staff is paid $1,500,000 in cash.
2) Federal payroll deductions related to 1. are $220,000. Deductions are paid into a custodial fund but have not yet been remitted to the federal tax authorities.
3) A special revenue fund repays a temporary loan from the general fund, in the amount of $100,000.
4) A capital projects fund receives bills from contractors, in the amount of $5,000,000, related to construction of an addition to the county courthouse. The amount had been previously encumbered in assigned fund balance. The capital projects fund pays $4,800,000 to the contractors.
5) Employees reported in the county landfill fund (enterprise fund) earn future pension and OPEB benefits with a present value of $250,000.
6) Employees reported in the general fund earn future pension benefits with a present value of $675,000.
Required
a. For each of the above transactions, prepare journal entries necessary to record the transactions in both the fund financial statements and the government-wide financial statements of the county. For the government-wide entries, indicate whether the item is reported in governmental or business-type activities. For the fund entries, indicate which fund is affected.
b. For each transaction item, indicate whether it is added, subtracted, or is not included in the reconciliation of the change in fund balances of governmental funds to the change in net position of governmental activities, appearing on the government-wide statements, and the amount of the reconciliation item, if included.

Question

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The Answer of Below are transactions and other financial information for a county government.
1) The county's general administrative staff is paid $1,500,000 in cash.
2) Federal payroll deductions related to 1. are $220,000. Deductions are paid into a custodial fund but have not yet been remitted to the federal tax authorities.
3) A special revenue fund repays a temporary loan from the general fund, in the amount of $100,000.
4) A capital projects fund receives bills from contractors, in the amount of $5,000,000, related to construction of an addition to the county courthouse. The amount had been previously encumbered in assigned fund balance. The capital projects fund pays $4,800,000 to the contractors.
5) Employees reported in the county landfill fund (enterprise fund) earn future pension and OPEB benefits with a present value of $250,000.
6) Employees reported in the general fund earn future pension benefits with a present value of $675,000.
Required
a. For each of the above transactions, prepare journal entries necessary to record the transactions in both the fund financial statements and the government-wide financial statements of the county. For the government-wide entries, indicate whether the item is reported in governmental or business-type activities. For the fund entries, indicate which fund is affected.
b. For each transaction item, indicate whether it is added, subtracted, or is not included in the reconciliation of the change in fund balances of governmental funds to the change in net position of governmental activities, appearing on the government-wide statements, and the amount of the reconciliation item, if included.

Below Are Transactions and Other Financial Information for a County