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FRISCO CITY CHAPTER 6 - 10 Points Due April 1st At the start of 2019, Frisco's Capital Projects Fund had no assets or liabilities. Prepare

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FRISCO CITY CHAPTER 6 - 10 Points Due April 1st At the start of 2019, Frisco's Capital Projects Fund had no assets or liabilities. Prepare the journal entries to record the following transactions in the Capital Projects Fun and post to the T-accts. 1. Frisco undertook construction of a new police station, designed to house both the Frisco police and the county sheriff and to serve as a detention center. To finance construction, Frisco received a cash grant of $1,000,000 from the county as an advance pending incurrence of expenditures. It also sold $2,000,000 of 20-year general obligation bonds. The bonds, sold April 1, 2019, were to be redeemed in equal semiannual installments of principal, with interest on the unpaid balance at the rat of 5 percent per annum, starting October 2, 2019. 2. Frisco awarded two contracts, one for architectural and construction supervision services ($200,000) and one for construction ($2,800,000). 3. The construction contract was completed in a timely manner, and the contractor submitted an invoice for $2,800,000. The invoice was paid, except that 5% was withheld, pending completion of inspection. 4. All construction and construction supervision work was completed. The construction architect/supervisor was paid in full, and the contractor was paid the balance due. DEBT SERVICE FUND TRANSACTIONS At the start of 2019, Frisco's Debt Service Fund had no assets or liabilities. Prepare the journal entries to record the following transaction in the DSF and where appropriate, in the General Fund. Post the entries to the T-accts. 5. The general Fund transferred $1,200,000 cash to the DSF. 6. The first installment of principal and interest on bonds sold above came due for payment. 7. The principal and interest due for payment were paid. 8. Debt service on bonds sold by Frisco in previous years came due and was paid. Principal and interest paymnets on those bonds for $600,000 and $470,000, respectively

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