During FY 2023, the voters of Surprise County approved construction of a $28 million police facility and an $18 million fire station to accommodate the county's population growth. The construction will be financed by tax-supported bonds in the amount of $35 million, a $2 million economic stimulus grant, and a portion of future use tax revenues. During 2023, the following events and transactions occurred. Required a. Prepare journal entries to record the the following transactions in a single Surprise County Construction Fund, in a capital projects fund, and in the governmental activities general journal at the government-wide level. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in whole dollar amounts and not in millions.) Transaction Fund / Governmental Activties General Journal Debit Credit 1. Issued $190,000 of 6 percent bond anticipation notes to cover preliminary planning and engineering expenses. Assume this note will be repaid when the bond is issued and thus can be considered long-term. Construction Fund Governmental Activities 2. Incurred and vouchered architecture and engineering costs in the amount of $69,000. They were split evenly between the two projects. (These items were not encumbered.) 2 Construction Fund Governmental Activities 3. Entered into a construction contract for $46 million-$28 million was for the police facility and $18 million was related to the fire station. Construction Fund 3 Governmental Activities 4. Issued the $35 million, 20-year 6 percent bonds at 101. (The premium would be recorded in a debt service fund. You do not need to record this entry.) Construction Fund Governmental Activities 5. Paid off the bond anticipation notes that had been outstanding 180 days. (Interest is an expenditure of the capital projects fund.) Construction Fund 5 Governmental Activities 6. An invoice for $23 million was received from the contractor for a portion of police facility construction ($11 million) and fire station construction ($12 million). 6a Construction Fund Record the reversal of encumbrances. 6b Record the construction Work-in-progress of the police facility and the fire station in the capital project fund. 6 Governmental Activities Record the construction Work-in-progress of the police facility and the fire station. 7. Half of the grant funds were received in cash. 7 Construction Fund Governmental Activities 8. The initial construction invoice, less 5 percent retainage, was paid. 8 Construction Fund 9. The fire station was completed, and a final invoice for the remaining $6 million was received. All fire station construction charges incurred can be capitalized as buildings. 9a Construction Fund Record the reversal of encumbrances. 9b 9c 9d Record the completion of the fire station construction contract. Governmental Activities Record the appropriation of funds towards completion the fire station. Record the completion of the fire station construction contract. 10. Following inspection, the fire station invoices were paid in full. 10 Construction Fund 11. At year-end, the contractor billed the county an additional $5.5 million for the police facility; however, the police facility was incomplete. 11a Construction Fund Record the reversal of encumbrances. 11b Record the police facility construction work-in-progress. Governmental Activities Record the police facility construction work-in-progress. 12. Temporary accounts were closed at year-end. Assume that the fund balances are all restricted. Construction Fund 12 Governmental Activities b. Prepare a Surprise County Construction Fund balance sheet for the year ended December 31, 2023. (Enter your answers in whole dollar amounts and not in millions.) SURPRISE COUNTY Construction Fund Balance Sheet December 31, 2023 Assets Cash Total Assets Liabilities and Fund Balances Liabilities: Vouchers Payable Contracts Payable Contracts Payable-Retained Percentage Total Liabilities Fund Balances: Fund Balance-Restricted Total Liabilities and Fund Balances 0 c. Prepare a Construction Fund statement of revenues, expenditures, and changes in fund balances for the year ended December 31, 2023. (Negative amounts should be indicated by a minus sign. Enter your answers in whole dollar amounts and not in millions.) Revenues SURPRISE COUNTY Construction Fund Statement of Revenues, Expenditures, and Changes in Fund Balances For the Period Ended December 31, 2023 Expenditures: Construction Expenditures-Police Construction Expenditures-Fire Interest Expenditures Total Expenditures Excess of Expenditures Over Revenues Other Financing Sources (Uses): Proceeds of Bond Anticipation Notes Proceeds of Bonds Retirement of Bond Anticipation Notes Total Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources and Uses Over Expenditures Fund Balances, January 1, 2023 Fund Balances, December 31, 2023 0 0 0 $ 0