Final answer:
Capital assets funded by general revenues for the police department are not recorded in the General Fund, but are recorded under Governmental Activities in the government-wide financial statements.
Step-by-step explanation:
When the City of Corvalis purchases a vehicle for the police department, which is funded by general revenues, the correct treatment in the governmental accounting journals would be:General Fund: NoGovernmental Activities: YesThis is because the police department's operations are financed by the general revenues, which means they are part of the governmental activities. However, capital assets such as vehicles are not recorded in the General Fund but rather in the government-wide statements, where governmental activities are reported.
The correct answer is d. General Fund: Yes; Governmental Activities: Yes. When the City of Corvalis purchases a vehicle for the police department and the operations of the police department are financed by general revenues, an asset would be recorded in the General Fund. This is because the General Fund accounts for the general operations of the government and any assets or liabilities related to it. Additionally, an asset would also be recorded in the Governmental Activities journal as it captures the overall financial activities of the government.