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Exercise 5 - 2 6 ( Static ) Capital Projects Transactions [ LO 5 - 2 , 5 - 4 , 5 - 5 )

Exercise 5-26(Static) Capital Projects Transactions [LO 5-2,5-4,5-5)
Mis year Southlork began work on a senige center to hold activities for its growing senior cifzen population. it is to be franced by a
$5,000,000 bond istue. o $500,090 grant, and a $$00,000 General Fund trensle. The fallowing transactions occurred during the
current year:
The General Fund translerred $500,000 to the Senier Center Capital Projtcts Fund.
A plot of land was purchased for $400,000 in cash. (This cost had not been encumbered)
Preliminery plaving and erigineering costs of $95,000 were vouchered. (This cost had not been encumbered)
A contract was signed with Sunset Conatruction Company for the major part of the project on a bid of $4,950,000.
The $5,000000 bonds were issued at par.
Temporary investments were purchased at a cost of $3,500,000.
A poyable was recorded for a 549500 billing from the Water and Sewer enterprise find for the cost of extending water pipes to the
new bulding. (This cost had not been encumbered.)
An invoice in the amount of $1,500,000 was recelived from Sunset Construction Company for pregress to date on the project.
The amount billed by the contractor less 5 percent retainage was paid.
Haif of the planing and engineering costs and $25,000 of the water and sewer billing were paid.
Grant revenue of $100,000 was recelved in caich for construction expenditires that were considered allowable costs in bccordance
with the grant agreement.
Closing entries were prepared as of year-end. Assume that $2,500,000 of the encumbrances outstanding wall be paid from the
bond proceeds and are therefore considered restricted resources. The remaining fund balance is assigned.
Airquired
a. Prepare joumal entries to recond the preceding information in the general ledget accounts for the Senior Center Capital Projects
Fund.
b. Prepare o statement of revenues, expenditures, asd changes in fund bolances for the period.
c. Preose o balance sheet for the Senior Center Capital Projects Fund as of yeatend.
Frepare a statement of rewehues, expenditures, and chatiges in fund balances for the pariod.
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