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Chesterfield County had the following transactions.

1. A budget is passed for all ongoing activities. Revenue is anticipated to be $834,000, with approved spending of $540,000 and operating transfers out of $242,000.
2. A contract is signed with a construction company to build a new central office building for the government at a cost of $8 million. The county previously recorded the budget for this project.
3. Bonds are issued for $8 million (face value) to finance construction of the new office building.
4. The new building is completed. An invoice for $8 million is received by the county and paid.
5. Previously unrestricted cash of $1 million is set aside by county officials to begin paying the bonds issued in (c).
6. A portion of the bonds comes due, and $1 million is paid. Of this total, $100,000 represents interest. The interest had not been previously accrued.
7. Property tax levies are assessed. Total billing for this tax is $800,000. On this date, the assessment is a legally enforceable claim according to the laws of the state. All money to be received is designated for the current period, and 90 percent is assumed to be collectible in this period. Receipt of an additional 6 percent is not expected until the subsequent period but in time to be available to pay current period claims. The remaining amount is viewed as uncollectible.
8. The county collects cash of $120,000 from a toll road. The money is restricted for highway maintenance.
9. The county receives stock investments valued at $300,000 as a donation from a grateful citizen. The investments are to be held permanently, but any income from these investments must be used to beautify local parks.

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