The town of Harrisville adopted the provisions of GASB 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments, for its financial statements issued for the year ended December 31, 2005. During the year ended December 31, 2005, Harrisville had the following selected transactions:

  • The general fund made a permanent transfer of $100,000 to an enterprise fund. The enterprise fund used the amount transferred to acquire capital assets.
  • The general fund transferred $1,000,000 to a capital projects fund for the town’s portion of the cost for the renovation of the town hall.
  • The general fund was reimbursed $5,000 by an enterprise fund for expenses paid by the general fund that were properly charged as operating expenses of the enterprise fund.

On Harrisville’s government-wide statement of activities for the year ended December 31, 2005, what amount should be reported as transfers?

  1. $ 100,000
  2. $1,100,000
  3. $1,005,000
  4. $ 105,000