I am in need of help on my government accounting project. Thank you!

Capital Projects Funds and Debt Service Funds Fund-based 1. Governmental-based On January 1, 2010, approval was obtained to begin construction of a new city hall. As a result of this approval, $2,800,000 in 5-year serial bonds,which a face interest rate of 7%, were sold at 104 (an effective rate of 6%). Principal and interest payments are made semiannually beginning July 1, 2010.The premium is to be used for debt payments for principal and interest. January 1, 2010 CPF GT Hint: face value of the bond is received by Capital Project Fund. CPF is a governmental fund, use modified accrual basis. Modified accural basis does not recognize log term debt, it is treated as Other financing sources. DSF Hint: Debt Service Fund is a governmental fund as well, use modified accrual basis. The premium (bond is sold at 104, meaning 104% of face value, thus 4% premium) is received by DSF. Premium is a liability, meaning the total borrowing is 2.8m*104%, not 2.8m. Modified accrual basis does not recognize long term liability, thus it is treated as Hint: governmental wide level use accrual basis, the treatment is the same as a other financial sources. for profit business, recognize bond payable and premium as usual. 2. On January 3, 2010, a $2,800,000 contract with GoodBuild Construction was signed for the construction. January 3, 2010 CPF GT Hint: contract is signed, modified accrual basis ask to recognized preliminary Hint: accrual basis accounting does not recognize a contract in accounting record. expenditure (encumbrance) and preliminary payable (encumbrance outstanding) No financial resources changed hand. 3. On June 30, 2010, a bill for $1,400,000 was received from GoodBuild as a result of one-half of the work on the construction being completed. June 30, 2010 CPF GT Hint: actual expenditure is determined, need to reverse the preliminaries (encumbrance and encumbrance outstanding) recognized in 3. Hint: no preliminaries are recorded under accrual basis in 3, no reversal needed. CPF GT Hint: recognize real expenditure. Remember modified accrual basis does not have the concept of expense. We use expenditure. Expenditure differs from expense in that it is not necessarily consumed. We do not recognize work in progress, a long term asset, because modified accrual basis does not recognize long term asset, neither does it recognize long term liability. Modified accrual basis focuses on current resources. 4. On July 1, 2010, the first debt payment for capital project bond was made. Hint: recognize construction work in progress, an asset. July 1, 2010 DSF GT Hint: borrowed 2.8m face value in 1, cash interest is 7% of face Hint: paid off 280000 principle, thus B/P should be reduced. Effective interest value=2.8*7%*6/12=98000 , interest payment is treated as expenditure-interest under rate is 6%, meaning interest expense is 6% of total liability. Total modified accrual basis. liability=B/P+Premium=2.8m+112000=2912000. Interest Principle is paid back in 5 years, twice a year, so should be 2.8m/10=280000 each expense=2912000*6%*(6/12).=87360. The difference between cash payment time. Principle payment is treated as expenditure-principle. We cannot debit a liability 98000 and interest expense 87360, is premium amortization, meaning you paid to reduce liability since a liability is never recorded in 1 to begin with. off part of your premium liability, thus premium on B/P should be reduced as well. 5. On July 15, 2010, the bill from GoodBuild was paid , less a 10% retainage to ensure performance. July 15, 2010 CPF GT Hint: retained portion is treated as a liability. Contract payable-Retained percentage. 6. On October 1, 2010, a bill for $1,400,000 was received from GoodBuild in recognition of the completion of work on the city hall addition Oct. 1, 2010 CPF GT Hint: actual expenditure is determined, need to reverse the preliminaries (encumbrance and encumbrance outstanding) recognized in 3. Hint: no preliminaries are recorded under accrual basis in 3, no reversal needed. CPF GT Hint: recognize construction work in progress, an asset. GT Hint: recognize real expenditure. Remember modified accrual basis does not have the concept of expense. We use expenditure. Expenditure differs from expense in that it is not necessarily consumed. We do not recognize work in progress, a long term asset, because modified accrual basis does not recognize long term asset, neither does it recognize long term liability. Modified accrual basis focuses on current resources. Hint: transfer work in progress to Building. 7. On November 3, 2010, after approval by the city inspectors, all amounts owed to GoodBuild were paid. Nov. 3, 2010 CPF Hint: contract payable in 6 and retained percentage in 5 are paid. 8. On January 1, 2011, the next payment on the capital project bond was made. GT Jan. 1, 2011 DSF GT Hint: paid off 280000 principle, thus B/P should be reduced. Effective interest rate is 6%, meaning interest expense is 6% of total liability. Total liability=Outstanding B/P+OutstandingPremium=2.8m-280,000+11200010640=2621360. 10640 is the premium paid off in 4. Hint: cash interest is 7% of outstanding bond face value=(2800,000Interest expense=2621360*6%*(6/12).=78640.8. The 280,000)*7%*(6/12)=88200. Recall that we paid off 280,000 principle in 4. difference between cash payment 88200 and interest expense 78640.8, is Principle payement is another 280,000. premium amortization, meaning you paid off part of your premium liability, thus Interest payment is expenditure-interest. Principle payment is expenditure-principle. premium on B/P should be reduced as well. 9. On August 1, 2012, the city entered into a capital lease agreement to purchase new equipment for its road crews. The agreement called for an initial payment of $12,000, with eight more equil annual payments of $15,000 beginning August 1, 2013. The city's normal cost of borrowing is 8%. The initial payment was made as agreed and the equipment was purchased. The General Fund handled all activities related to this transaction. Aug. 1, 2012 GF GT Hint: the 8 annual payments present value (PV=?, PMT=15000, i=8%, n=8) is 86199.58. You can easily solve the PV in excel. Click formula, financial, then PV. rate=8%, Nper=8. Type is 0, meaning this is an ordinary annuity, payments are due at the end of the time period, meaning one time period from now. This long term capital lease liability is treated as Other Financial Sources under modified accrual basis since Hint: Equipment is recorded since we consider we bought the equipment under modified accrual basis does not recognize long term liability. The equipment is treated capital lease instead of leasing. We recognize capital lease payable Present as expenditure since modified accrual does not recognize long term asset. Value. 10. On August 1, 2013, the first annual payment is made on the capital lease agreement. Aug. 1, 2013 DSF GT Hint: annual payment is 15000, part for principle, part for interest. Interest=total liability*rate=86199.58*8%=6895.97. Interest payment is expenditure-interest, principle payment is expenditure-principle. We never recognized capital lease payable under Hint: Interest payment is interest expense and principle payment reduces capital modified accrual basis in 9 thus we canot debit capital lease payable here either. lease payable under accural basis. 11. On December 31, 2013, depreciation of $300,000 is recorded as appropriate for all govermental capital assets. Dec. 31, 2013 DFS GT Hint: no long term assets are recorded to begin with, thus no depreciation. Hint: record depreciation as usual