The following are transactions for the city of Springfield. a.Borrowed $20,000 by issuing

The following are transactions for the city of Springfield. a.Borrowed $20,000 by issuing

The following are transactions for the city of Springfield.

 

a.Borrowed $20,000 by issuing a three-month, 5% note.

b.Paid $4,000 for equipment.

c.Services for $1,000 were billed and collected.

d.Year-end accrual of 3 months interest on note in (a).

 

Required:

Analyze the above transactions by using the accounting equation for a proprietary fund.

6) The following are transactions for the city of Franklin.

 

a.Borrowed $20,000 by issuing a two-year note.

b.Purchased equipment for $6,000 cash.

c.Licenses for $700 were billed on account.

d.Accrued employee salary costs of $7,000.

e.Depreciation expense on equipment for year, $1,000.

 

Required:

Analyze the above transactions by using the accounting equation for a governmental fund.