Amber City borrowed $1,000,000 secured by a 5-year mortgage note. The cash from the note was used to purchase a building for vehicle and equipment maintenance. Show how these two transactions should be recorded in the General Fund and governmental activities general journals.

Indicate whether the following revenues would most likely be classified as program revenues or general revenues on the government-wide statement of activities.

1. Unrestricted operating grants that can be used at the discretion of the city council.
2. Capital grants restricted for highway construction.
3. Charges for building inspections.
4. A special assessment for snow removal.
5. Fines and forfeits.
6. Motor vehicle fuel taxes restricted for road repair.
7. Unrestricted investment earnings.