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• General Fund and Leasing in Government Accounting

Submit your responses to the following questions in a 1-2 page summary MSWord document. Label each question clearly. For computations done in an Excel spreadsheet, please copy and paste your work into your MSWord document, For written answers, please make sure your responses are well written, use APA formatting and have the proper citation, if needed.

1. If the General Fund of a certain city needs $6,720,000 of revenue from property taxes to finance estimated expenditures of the next fiscal year and historical experience indicated that 4% of the gross levy will not be collected, what should be the amount of the gross levy for property taxes? Please show all computations in good form.

2. How does one determine whether a particular lease is a capital lease or an operating lease? What entries are required in the general journals of a government fund and governmental activities at the government-wide level to record a capital lease at its inception?

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