Howard City maintains the following funds:
2. Special revenue
3. Capital projects
4. Debt service
6. Investment trust
For each of the following transactions, indicate which fund would most likely be used to report the transaction:
a. The City collects $1 million of taxes for an independent fire district located within the City.
b. The City spends $1.2 million on street maintenance using the proceeds of a city gas tax dedicated for road and highway maintenance and improvements.
c. The City receives a bequest of $1.5 million. The donor's Will requires that the principal amount be invested in perpetuity and that the earnings on the investment be used to maintain a city park to be renamed for the donor.
d. The City collects water and sewer fees of $4.2 million.
e. The City pays $4 million to a contractor for work on the new bridge.
f. The City receives $1.3 million to invest on behalf of the County.
g. The City pays its police officers wages of $325,000.
h. The City pays $2.2 million in Bond Interest on its general obligation debt.