Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In the year 2020, the Santa Crust County approved budgets to construct a $32 million Highway 103. The construction will be financed by tax-supported bonds

In the year 2020, the Santa Crust County approved budgets to construct a $32 million Highway 103. The construction will be financed by tax-supported bonds in the amounts of $30 million, and tax revenues. Please record journal entries for the following transactions for the governmental activities on government-wide financial statements:

1. The county has issued a long-term $100,000, 6% bond anticipation notes to cover the planning costs. The notes will be repaid when the bond is issued.

2. The county has incurred engineering costs in the amount of $60,000.

3. The county entered into a construction contract of $32 million for this project.

4. The county issued the $30 million, 20-year 5 percent bonds at 101.

5. The county paid off the bond anticipation notes that had been outstanding 180 days.

6. The county was billed $16 million by the contractor. The county paid the balance less 5% retainage.

7. At the end of the year 2020, close all temporary accounts. Assume all fund balances are restricted.

8. In the year 2021, the construction contractor continued to work on the Highway and completed it in June 2021. The county was billed $14 million.

9. The county paid off the full balance, including the retainage, following a final inspection.

10. Highway 103 can be capitalized after the completion of the project.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Cases An Interactive Learning Approach

Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt

4th Edition

0132423502, 978-0132423502

More Books

Students also viewed these Accounting questions