In 2014, the City of Ahamo began work on a community center to be financed by a grant from the federal government and by the issuance of bonds. The total cost of the community center was projected to be $ 9,000,000. $2,000,000 was to come from the federal grant. The rest will be financed by a serial bond issue.

Record the following transactions on the books of the Capital Projects Fund and the Governmental Activities:.

a. Issued $800,000 of 9%, 120 days bond anticipation notes to be repaid from the proceeds of bonds.

Capital Projects Fund

Governmental Activities

b. The federal grant was recorded as a receivable: one-half of the grant is to be paid to the City of Ahamo in 2014, the rest will be received late in 2015. The 2015 receipt will not be available for use until 2015 because it will need to be appropriated by the federal government in 2015.

Capital Projects Fund

Governmental Activities

c. A contract was let for the major portion of the grant to Kiwi and Sons Construction in the amount of $8,500,000.

Capital Projects Fund

Governmental Activities

d. Preliminary planning and engineering costs of $75,000 were paid to Westies Engineering. This amount had previously been encumbered.

Capital Projects Fund

Governmental Activities

e. An invoice in the amount of $1,200,000 was received from Kiwi for progress to date. A liability was recorded.

Capital Projects Fund

Governmental Activities

f. Cash was received from the federal government in the amount of $1,000,000.

Capital Projects Fund

Governmental Activities

g. The city bonds were issued at 101, with the bond premium deposited directlyinto the debt service fund without going through the capital projects fund.

Capital Projects Fund

Governmental Activities

i. The bond anticipation notes and interest on them were repaid.

Capital Projects Fund

Governmental Activities

j. The amount billed by Kiwi was paid less a 5% retainage.

Capital Projects Fund

Governmental Activities