The following information relates to Gel City, whose first year ended December 31, 20X8. Assume Gel has

Question:

The following information relates to Gel City, whose first year ended December 31, 20X8. Assume Gel has only the long-term debt specified in the information and only the funds necessitated by the information.

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- There were no amendments to the budget as originally adopted.
- No property taxes receivable have been written off. and the allowance for uncollectibles balance is unchanged from the initial entry at the time of the original tax levy.
- There were no encumbrances outstanding at December 31, 20X8.
2. Capital projects fund:
Finances for Gel's new civic center were provided by a combination of general fund transfers, a state grant, and an issue of general obligation bonds. Any bond premium on issuance is to be used for the repayment of the bonds at their $\$ 1,200,000$ face value. At December 31, 20X8, the capital project fund for the civic center had the following closing entry.

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- Also, at December 31, 20X8, capital projects fund entries reflected Gel's intention to honor the $\$ 1,300,000$ purchase orders and commitments outstanding for the civic center.
- During 20X8, total capital project funds encumbrances exceeded the corresponding expenditures by $\$ 42,000$. All expenditures were previously encumbered.
- During 20X9, the capital projects fund received no revenues and no other financing sources. The civic center building was completed in early $20 \mathrm{X} 9$. and the capital projects fund was closed by a transfer of $\$ 27.000$ to the general fund.
3. Water utility enterprise fund:
Gel issued $\$ 4,000,000$ of revenue bonds at face value. These bonds. together with a $\$ 700,000$ transfer from the general fund, were used to construct a water utility plant. Water utility revenues are to be the sole source of funds to retire these bonds beginning in the year 20X8.
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Use the information provided for Gel City to answer the following items:

a. Record the journal entry that was made in the general fund to record the budget for $20 \times 8$.

b. What was the total amount debited to property taxes receivable at the time of the original tax levy? How much cash was collected from property taxes during $20 \mathrm{X} 8$ ?

c. Record the joumal entry that was made in the general fund during $20 \times 8$ to record the transfer out.

d. On the general fund balance sheet at December 31. 20X8, what amount would be reported for unreserved fund balance?

e. Assume that the water utility billed the general fund $\$ 2.000$ for using water during $20 \mathrm{X} 8$. What journal entry would be recorded in the general fund to record the billing? What journal entry would be recorded in the water utility to record the billing?

f. Record the journal entries that were made in the water utility for the sale of the revenue bonds and for the transfer from the general fund.
g. In the govemment-wide financial statements, what amount should be reported for general longterm debt bonds payable at December 31, 20X8?
$h$. In the government-wide financial statements, what amount should be reported for the increase in fixed assets at December $31,20 \times 8$, as a result of the capital projects fund's transactions?
$i$. In the capital projects fund, what was the amount of the total encumbrances recorded during 20X8?
$j$. In the capital projects fund, what was the unreserved fund balance at December 31, 20X8?
k. How much was the state capital grant for the civic center?
I. What was the completed cost of the civic center?
$m$. What journal entry would be made by the general fund to record the transfer of $\$ 27,000$ from the capital project fund in $20 \times 9$ ?