1. Reiver Township decides to construct a new city hall. Based on the following data, prepare a statement of revenues, expenditures, and changes in fund balance for Reiver Township's Capital Projects Fund. All transactions occur within the calendar year 2013.

a. The Fund starts and ends the year with a zero fund balance.

b. The Fund's financing sources for the city hall project were: bond proceeds - $5 million; operating transfer from the General Fund - $2 million; state grant - $1 million; interest from the temporary investment of cash - $70,000.

c. The total costs of constructing the new city hall were: construction costs - $7,200,000; design and construction supervision fees - $600,000.

d. City laws require that, whenever bonds are used, any remaining difference between total financing sources and construction costs must be transferred to the Debt Service Fund. Therefore, $270,000 was transferred to the Debt Service Fund.

Answer:

a.

b.

c.

d.

2. Following is a trial balance of City of Smithville's General Fund at December 31, 2013. Prepare: (a) closing entries; (b) a post-closing trial balance; (c) a statement of revenues, expenditures, and changes in fund balance for the year ended December 31, 2013; and (d) a balance sheet at December 31, 2013.

Debits Credits

Cash $ 20,000

Property taxes receivable 30,000

Due from other funds 10,000

Vouchers payable $ 15,000

Fund balance (unreserved), January 1, 2008 25,000

Revenues - property taxes 325,000

Revenues - other 35,000

Expenditures - salaries 280,000

Expenditures - materials 20,000

Transfer out to Debt Service Fund 40,000

Encumbrances - materials 4,000

Budgetary fund balance reserved for encumbrances 4,000

Estimated revenues - property taxes 325,000

Estimated revenues - other 40,000

Appropriations - salaries 290,000

Appropriations - materials 25,000

Appropriations - transfer to Debt Service Fund 40,000

Budgetary fund balance 10,000

Totals $769,000 $769,000

Answer:

GENERAL JOURNAL Page

Date		Description of entry	Post Ref	Debit		Credit