Governmental Accounting

Wilkes Countys fiscal year is from July 1 to June 30. Wilkes County is going to build and maintain a new Little League baseball field on land it already owns. It is expected that the project will take 2 years to complete. The expected revenues are as follows: Bond Proceeds................................................................... 700,000 Private grant (Outright contribution to the project)....................... 750,000 State Grant (10% of the cost, up to 240,000)............................. 240,000 Federal Grant (25% of cost, up to $600,000)............................. 600,000 Private Donations................................................................ 110,000 Total Resources.................................................................. 2,400,000 Transactions 1. July 15, Year 1: Private Grant, State grant, and the Federal grant are received. Be careful about the conditions on each of the grants when recording the receipt of the funds. CPF 2. Aug. 15, Year 1: The $700,000 bond issue to finance the ball park is issued at par and the money was received. The Bonds is a 10 year semiannual bond at 6.5%, with payments due on Aug. 15 and Feb.15. CPF GLTL 3. Aug. 30, Year 1: Half of the money due from private donations was received by the CPF. $96,290 was transferred to the Debt Service Fund for interest and principal payments for the next year. $40,000 was invested by the DSF. CPF DSF 4. During the month of September, the county paid an architect $100,000 to draw up plans for the project and signed a contract with Williamson Construction to begin work on the park. The contract was for a total of $2,000,000. There will be a 5% retained percentage which will be held back from the final payment. CPF

5. Feb. 15, Year 1: Payment of $48,145 was made on bond: $22,750 on principal and the rest was interest. Dont forget the effect on the GLTL. DSF GLTL 6. Mar. 1, Year 1: Invoices were received and vouchered for the Williamson contract: Estimated and Actual: Plumbing...... 120,000 Structure....... 500,000 Electrical...... 230,000 Landscaping..100,000 CPF 7. Apr. 1, Year 1: The Invoices were paid in #6. CPF 8. June 30, Year 1: Investments paid $10% return and increased 6% in value. DSF 9. June 30, Year 1: The asset was recorded in the GCA. GCA

Year 2 10. Aug. 1, Year 2: The investments are sold for $55,000. Dont forget the adjustment for FMV made last year when determining the book value of the investments. DSF 11. Aug. 15, Year 2: The second bond payment is paid. $21,925 on principal and the rest was interest. DSF GLTL 12. Aug. 30, Year 2: The other half of the private donations is received. CPF 13. Aug. 30, year 2: $96,290 is transferred to the DSF for interest and principal payments for the next year. $40,000 is invested by the DSF. CPF DSF 14. Jan. 30, year, 2: The park is completed. Invoices were received and vouchered for the Williamson contract: Estimated: Actual: Plumbing...... 230,000 100,000 Structure....... 600,000 700,000 Electrical...... 130,000 130,000 Landscaping.. 90,000 100,000 The holdback should be figured on the entire amount of the billings. CPF 15. Feb. 15, year 2: Payment of $48,145 was made on bond: $21,072 on principal and the rest was interest. Dont forget the effect on the GLTL. DSF GLTL 16. Feb. 28: Payment on the vouchers in #15 were made. CPF

17. Mar. 15: Year 2: Inspection services were performed (internal services) by a department financed through the General Fund for a capital project, in the amount of $9,000. They are not reimbursable by the State nor Federal grants. Inspection fees will be capitalized in the GCA in #19. (only want the CPF journal entry at this time.) CPF 18. Mar. 30, Year: 2: The new park and the facilities were approved by the inspector and accepted by Wilkes County. It was ordered that: a. The retained percentage be paid to the contractor in #14. b. The inspector be paid in #17. c. The Federal and State governments be paid. d. The remaining cash from the CPF be transferred to the DSF. e. The baseball Park be recognized in the GCA. Dont forget to convert the unfinished portion to the finished Park. CPF DSF GCA