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A city transfers cash of $90,000 from its general fund to start construction on a police station. The city issues a bond at its $1.8
A city transfers cash of $90,000 from its general fund to start construction on a police station. The city issues a bond at its $1.8 million face value. The police station is built for a total cost of $1.89 million. a. Prepare all necessary journal entries for these transactions for both fund and government-wide financial statements. Assume that the city does not record the commitment for this construction. (Select the appropriate fund for each situation when required. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in dollar, not in millons.) Transaction Fund/Activity General Journal 1. Transfer from general fund and issue of bonds for construction of police station. 1 Record sale of bonds. Record completion of construction. 2. Transfer from general fund and issue of bonds for construction of police station. Record authorization of transfer for construction. 2 3. Transfer from general fund and issue of bonds for construction of police station. 3 Record transfer in of cash. Record sale of bonds. Debit Credit 3. Transfer from general fund and issue of bonds for construction of police station. 3 Record transfer in of cash. Record sale of bonds. Record completion of construction
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