Capital Project Transactions The City of Fargo, North Dakota authorized construction of a new levee to control flooding, on February 1, 2020. The $16,000,000 project will be financed by a bond issue to be sold in March 2020. The city's fiscal year ends June 30. The following events occurred in fiscal 2020: February 10: The general fund advanced $500,000 to the capital projects fund to finance initial projectplanning March 1: $350,000 was paid for initial planning, March 15: The bonds were issued at 101.The excess cash received was remitted to the debt service fund. The advance from the general fund was paid. The contract was awarded for $15,200,000. June 10 The contractors submitted bills for $2,400,000. The city applied its 10% retainage policy, and paid the net amount awed. Assume all capital projects resources are restricted. March 20: Required a. Record all necessary entries in the capital projects fund for the above information, including closing entries. Enter answers using all zeros (do not abbreviate to millions or thousands). Capital Projects Fund Journal Date Description Debit Credit 2/1/20 Bonds authorized-unissued 16000000 Appropriations 16000000 To record budget for levee. 2/10/20 Cash 500000 Due to general fund 500000 To record advance from general fund. 3/1/20 Expenditures 350000 Cash 350000 To record initial planning costs. 3/15/20 Cash 16160000 Bond proceeds 16160000 To record bond issuance. Transfer out 160000 Cash 160000 To record remittance to debt service fund. Due to general fund 500000 Cash 500000 To record repayment of general fund advance. 3/20/20 Encumbrances 15200000 Fund balance-restricted 15200000 To record awarding of contract 6/10/20 Fund balance-restricted 2400000 Encumbrances 2400000 To record submission of bills. Expenditures 2400000 Contracts payable-retainage 240000 Cash 2160000 To record payment of bills. Closing entries: 6/30/20 Appropriations Expenditures Transfer out Encumbrances Fund balance-restricted To close the expenditures, transfers, and encumbrances accounts. Bond proceeds Bonds authorized-unissued Transfer out To dose the other financing sources account. b. Assuming this is the only project reported in the capital projects fund, prepare its statement of revenues, expenditures, and changes in fund balances and ending balance sheet for fiscal 2020. Enter answers using all zeros (do not abbreviate to millions or thousands). Do not negative signs with any of your answers hela 41202021 City of Fargo Statement of Revenues, Expenditures, and changes in Fund Balance Capital Projects Fund For the Year Ended June 30, 2020 Expenditures $ Other financing sources/uses: Transfer out Bond proceeds Change in fund balance Fund balance-beginning Fund balance-ending Assets Cash City of Fargo Balance Sheet - Capital Projects Fund June 30, 2020 Liabilities and fund balances Contracts payable-retainage $ Fund balance-restricted Total $ $ Total $
