Final answer:
An asset purchased by the City of Newton for the police department, funded by general revenues, would be recorded in the governmental funds general ledger and the government-wide statement of net position using the modified accrual and full accrual accounting methods respectively.
Step-by-step explanation:
When the City of Newton 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 governmental funds general ledger and the government-wide statement of net position. As this transaction is related to a governmental fund (police department), it would typically be recorded in the capital outlays of the governmental fund journal. The expense would not be recognized immediately in the fund financial statements because it is capitalized; instead, it's depreciated over its useful life in the government-wide financial statements.
Furthermore, the asset acquisition will be recorded using the modified accrual basis of accounting that is typical for governmental funds. The entry would decrease the fund balance and increase the capital assets in the government-wide financial statements, where the full accrual method of accounting is adopted.