5-4

The citizens of Spencer County approved the issuance of $2,000,000 in 6 percent general obligation bonds to finance the construction of a courthouse annex. A capital projects fund was established for that purpose. The preclosing trial balance of the courthouse annex capital project fund follows:

Trial BalanceDecember 31,2015DebitsCredits

Cash$900,000

Contract payable$550,000

Due from state government200,000

Encumbrances85,000

Expenditurescapital1,850,000

Intergovernmental grant400,000

OFS: premium on bonds45,000

OFS: proceeds sale of bonds2,000,000

Budgetary fund balanceReserve

For encumbrances85,000

Transfer out45,000

$3,080,000$3,080,000

A.Prepare a balance sheet for the Courthouse Annex Capital Project Fund, assuming all unexpended resources are restricted to construction of the courthouse annex.