The General Fund of a small municipality began the current f

The General Fund of a small municipality began the current fiscal year with $200,000 cash. During the fiscal year, the General Fund made cash disbursements for the following:

- Salaries and other personnel costs, $90,000

- Office rent and utilities, $12,000

- Retirement of debt principal, $20,000; payment of interest, $2,000

- Purchased equipment at the beginning of the fiscal year for $60,000; the equipment is expected to last 5 years and have a salvage value of $6,000

- Photocopier rental, $8,000

         

Compute the total amount of expenditures to be reported on the fund financial sstatement of the General Fund.

(Do not use $)

Solution

Calculation of the total expenditureto be reported in fund financial statement of the general fund: Particulars Amt. Operating Expenditures: * Salaries and other personnel cost          90,000 * Office rent and utilities          12,000 * Photocopier rental            8,000          110,000 Cpaital outlay: * Purchase of equipment            60,000 Debt Service: *Debt Principle          20,000 * Interest            2,000            22,000 Total          192,000 Note: Depreciation on equipment will be recorded as an expense during the year.