Question

Under the dual-track accounting approach used in the text, which of the following transactions or events would be recorded in the general journal for governmental activities at the government-wide level?

1) Issuance of long-term debt
2) Collection of property taxes
3) Purchase of office supplies
4) Transfer of funds between departments

Answer 1

Under the dual-track accounting approach, the general journal for governmental activities at the government-wide level would record the issuance of long-term debt, collection of property taxes, and transfer of funds between departments.

Step-by-step explanation:

Under the dual-track accounting approach used in the text, the following transactions or events would be recorded in the general journal for governmental activities at the government-wide level:

1. Issuance of long-term debt: When the government issues long-term debt, it needs to record this transaction in the general journal for governmental activities at the government-wide level. This helps in keeping track of the amount of debt taken on by the government.
2. Collection of property taxes: When the government collects property taxes, it needs to record this transaction in the general journal for governmental activities at the government-wide level. This helps in tracking the revenue generated from property taxes.
3. Transfer of funds between departments: When the government transfers funds between departments, it needs to record this transaction in the general journal for governmental activities at the government-wide level. This helps in maintaining accurate records of fund transfers.

The purchase of office supplies would not be recorded in the general journal for governmental activities at the government-wide level as it is not a transaction that directly affects the government-wide financial statements.