1. Operating Transactions, Special Topics, and Financial Statements. The City of Hinton's General Fund had the following post-closing trial balance at April 30, 2016, the end of its fiscal year:

	Debits	Credits
Cash	$97,000
Taxes Receivable--Delinquent	$583,000
Estimated Uncollectible Delinquent Taxes		$189,000
Interest and Penalties Receivable	$26,280
Estimated Uncollectible Interest and Penalties		$11,160
Inventory of Supplies	$16,100
Vouchers Payable		$148,500
Due to Federal Government		$59,490
Fund Balance--Nonspendable-- Inventory of Supplies		$16,100
Fund Balance--Unassigned		$298,130
Total	$722,380	$722,380

During the year ended April 30, 2017, the following transactions, in summary form, with subsidiary ledger detail omitted, occurred: The budget for Fiscal Year (FY) 2017 provided for General Fund estimated revenues totaling $3,140,000 and appropriations totaling $3,100,000.

The city council authorized temporary borrowing of $500,000 in the form of a 120-day tax anticipation note. The loan was obtained from a local bank at a discount of 6 percent per annum (debit Expenditures for the discount in the General Fund journal and Expenses--General Government in the governmental activities journal).

The property tax levy for FY 2017 was recorded. Net assessed valuation of taxable property for the year was $43,000,000, and the tax rate was $5 per $100. It was estimated that 3 percent of the levy would be uncollectible.

Purchase orders and contracts were issued to vendors and others in the amount of $2,060,000.

The County Board of Review discovered unassessed properties with a total taxable value of $500,000. The owners of these properties were charged with taxes at the city's General Fund rate of $5 per $100 assessed value. (You need not adjust the Estimated Uncollectible Current Taxes account.)

$1,961,000 of current taxes, $383,270 of delinquent taxes, and $20,570 of interest and penalties were collected.

Additional interest and penalties on delinquent taxes were accrued in the amount of $38,430, of which 30 percent was estimated to be uncollectible.

Because of a change in state law, the city was notified that it will receive $80,000 less in intergovernmental revenues than was budgeted.

Total payroll during the year was $819,490. Of that amount, $62,690 was withheld for employees' Federal Insurance Contributions Act (FICA) tax liability, $103,710 for employees' federal income tax liability, and $34,400 for state taxes; the balance was paid to employees in cash.

The employer's FICA tax liability was recorded for $62,690.

Revenues from sources other than taxes were collected in the amount of $947,000.

Amounts due the federal government as of April 30, 2017, and amounts due for FICA taxes, and state and federal withholding taxes during the year were vouchered.

Purchase orders and contracts encumbered in the amount of $1,988,040 were filled at a net cost of $1,987,570, which was vouchered.

Vouchers payable totaling $2,301,660 were paid after deducting a credit for purchases discount of $8,030 (credit Expenditures).

The tax anticipation note of $500,000 was repaid.

All unpaid current year's property taxes became delinquent. The balances of the current tax receivables and related uncollectibles were transferred to delinquent accounts.

A physical inventory of materials and supplies at April 30, 2017, showed a total of $19,100. Inventory is recorded using the purchases method in the General Fund; the consumption method is used at the government- wide level. (Note: A periodic inventory system is used both in the General Fund and at the government-wide level. When inventory was purchased during the year, Expenditures were debited in the General Fund journal and Expenses were debited in the governmental activities journal.)

Using this information

a. Record in general journal form the effect of the above transactions on the General Fund and governmental activities for the year ended April 30, 2017. Do not record subsidiary ledger debits and credits.

b. Record in general journal form entries to close the budgetary and operating statement accounts in the General Fund only. Do not close the governmental activities accounts.

c. Prepare a General Fund balance sheet as of April 30, 2017.

d. Prepare a statement of revenues, expenditures, and changes in fund balance for the year ended April 30, 2017. Do not prepare the government-wide financial statements.

2. General Capital Assets. Make all necessary entries in the appropriate governmental fund general journal and the government-wide governmental activities general journal for each of the following transactions entered into by the City of Loveland:

a. The city received a donation of land that is to be used by Parks and Recreation to develop a public park. At the time of the donation, the land had a fair value of $5,200,000 and was recorded on the donor's books at a historical cost of $4,500,000.

b. The Public Works Department sold machinery with a historical cost of $35,100 and accumulated depreciation of $28,700 for $6,400. The machinery had originally been purchased with special revenue funds.

c. A car was leased for the mayor's use. Since the term of the lease exceeded 75 percent of the useful life of the car, the lease was capitalized. The first payment was $550 and the present value of the remaining lease payments was $30,000.

d. During the current year, a capital projects fund completed a new public safety building that was started in the prior year. The total cost of the project was $9,720,000. Financing for the project came from a $9,000,000 bond issue that was sold in the prior year, and from a $720,000 federal capital grant received in the current year. Current year expenditures for the project totaled $1,176,000. The full cost is attributed to the building since it was constructed on city-owned property.

e. Due to technological developments, the city determined that the service capacity of some of the technology equipment used by general government had been impaired. The calculated impairment loss due to technology obsolescence was $1,156,000.

3. Multiple-Project Fund Transactions. During FY 2017, the voters of Surprise County approved construction of a $21 million police facility and an $11 million fire station to accommodate the county's population growth. The construction will be financed by tax-supported bonds in the amount of $30 million, a $1 million economic stimulus grant, and a portion of future use tax revenues. During 2017, the following events and transactions occurred:

Issued $120,000 of 6 percent bond anticipation notes to cover preliminary planning and engineering expenses.

Incurred architecture and engineering costs in the amount of $60,000. They were split evenly between the two projects.

Entered into a construction contract for $32 million--$21 million was for the police facility and $11 million was related to the fire station.

Issued the $30 million, 20-year 5% bonds at 101. (The premium should be recorded in a debt service fund. You do not need to record this entry.)

Paid off the bond anticipation notes that had been outstanding 180 days. (Interest is an expenditure of the capital projects fund.)

An invoice for $16 million was received from the contractor for a portion of police facility construction ($10 million) and fire station construction ($6 million).

Half of the grant funds were received in cash. The remainder is anticipated in 2018; however, the grantor notified the county that there is no guarantee that the federal government will appropriate the 2018 portion.

The initial construction invoice, less 5% retainage, was paid.

The fire station was completed, and a final invoice for the remaining $5 million was received. All fire station construction charges incurred can be capitalized as buildings.

Following inspection, the fire station invoices were paid in full.

At year-end, the contractor billed the county an additional $7.5 million for the police facility; however, the police facility was incomplete.

Temporary accounts were closed at year-end. Assume that the fund balances are all restricted.

Using this information

a. Prepare journal entries to record the preceding information in a single Surprise County Construction Fund and the governmental activities general journal at the government-wide level.

b. Prepare a Surprise County Construction Fund balance sheet for the year ended December 31, 2017.

c. Prepare a Construction Fund statement of revenues, expenditures, and changes in fund balances for the year ended December 31, 2017.

d. How would these capital expenditures for the police facility and fire station appear on the Surprise County's government-wide statements of net position and activities?