(Comparative Computations of Expenditures and Expenses Based on the Same

Essay

(Comparative computations of expenditures and expenses based on the same underlying transactions)
A department of a local government began operations at the beginning of the current fiscal year with $250,000 cash.During the fiscal year,the department made cash disbursements for the following:
-Salaries and other personnel costs,$100,000
-Office rent and utilities,$24,000
-Retirement of debt principal,$10,000;payment of interest,$2,200
-Purchased equipment at the beginning of the fiscal year for $30,000;the equipment is expected to last 6 years and have a salvage value of $6,000
-Photocopier rental,$10,500
Based on the preceding transactions,compute total annual expenditures for this department assuming it performs governmental-type activities and is accounted for in the General Fund.
Then compute total annual expenses for this department assuming it performs activities within an Enterprise Fund.