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Journal entries, financial statements, and closing entries for a Capital Projects Fund The following transactions occurred during the fiscal year July 1 , 2 0
Journal entries, financial statements, and closing entries for a Capital Projects Fund The following transactions occurred during the fiscal year July to June : The City of Spainville approved the construction of a city hall complex for a total cost of $ A few days later, a contract with a percent retainage clause was signed with Paltrow Construction for the complex. The buildings will be financed by a federal expendituredriven grant of $ and a general obligation bond issue of $ During the current year, investment revenue of $ is budgeted. Assume the budget is recor The following transactions occurred during the fiscal year July to June : The City of Spainville approved the construction of a city hall complex for a total cost of $ A few days later, a contract with a percent retainage clause was signed with Paltrow Construction for the complex. The buildings will be financed by a federal expendituredriven grant of $ and a general obligation bond issue of $ During the current year, investment revenue of $ is budgeted. Assume the budget is recorded in the accounts and encumbrance accounting is used. The bonds were issued for $the face amount of the bonds was $ The difference between the actual cost of the project and the bond and grant proceeds was expected to be generated by investing the excess cash during the construction period. The city collected the grant from the government. The city invested $ The contract signed with Paltrow stipulated that the contract price included architect fees. The architects were paid their fee of $ by Spainville. Retainage does not apply to the architect fees. Assume a Vouchers payable account is used. Paltrow submitted a progress billing for $ The billing, less percent retainage, was approved. Assume that the city will use resources from the federal grant to make this payment. Investments that cost $ were redeemed for a total of $ Note: The $ increase represents interest income. Interest income totaling $ was received in cash. The contractor was paid the amount billed in transaction less a percent retainage. The contractor submitted another progress billing for $ The billing, less retainage, was approved. Investments totaling $ were redeemed, together with additional interest income of $ The contractor was paid the amount billed in transaction less a percent retainage. Interest income of $ was accrued. Bond interest totaling $ was paid. Use the preceding information to do the following: a Prepare the journal entries necessary to record these transactions in a Capital Projects Fund for the City of Spainville. b Prepare a trial balance for the fund as of June before closing. c Prepare any necessary closing entries. The general obligation bond proceeds and federal grant revenues are restricted by the debt covenant and the federal government for construction of the city hall complex. Neither the debt covenant nor the federal grant makes any mention of how investment earnings on their money should be used. Based on authority granted it by the city council, the City of Spainville's management has decided to use the investment earnings for construction of the city hall complex or if not needed for construction, for debt service. d Prepare a statement of revenues, expenditures, and changes in fund balance for the year ended June and a balance sheet as of June e Prepare the journal entry or entries necessary to record the remainder of the budget and to reestablish the budgetary accounts for encumbrances as of July Assume investment revenues of $ are expected in the fiscal year. Note: If no journal entry is necessary, select the no entry required debit and no entry required credit for the account names and record zero for the debit and credit amounts.Journal entries, financial statements, and closing entries for a Capital Projects Fund
Journal entries, financial statements, and closing entries for a Capital Projects Fund
The following transactions occurred during the fiscal year July to June :
The City of Spainville approved the construction of a city hall complex for a total cost of $
A few days later, a contract with a percent retainage clause was signed with Paltrow Construction for the complex.
The buildings will be financed by a federal expendituredriven grant of $ and a general obligation bond issue of $
During the current year, investment revenue of $ is budgeted. Assume the budget is recor
The following transactions occurred during the fiscal year July to June :
The City of Spainville approved the construction of a city hall complex for a total cost of $
A few days later, a contract with a percent retainage clause was signed with Paltrow Construction for the complex.
The buildings will be financed by a federal expendituredriven grant of $ and a general obligation bond issue of $
During the current year, investment revenue of $ is budgeted. Assume the budget is recorded in the accounts and encumbrance accounting is used.
The bonds were issued for $the face amount of the bonds was $ The difference between the actual cost of the project and the bond and grant proceeds
was expected to be generated by investing the excess cash during the construction period.
The city collected the grant from the government.
The city invested $
The contract signed with Paltrow stipulated that the contract price included architect fees. The architects were paid their fee of $ by Spainville.
Retainage does not apply to the architect fees. Assume a Vouchers payable account is used.
Paltrow submitted a progress billing for $ The billing, less percent retainage, was approved. Assume that the city will use resources from the federal grant to make this payment.
Investments that cost $ were redeemed for a total of $ Note: The $ increase represents interest income.
Interest income totaling $ was received in cash.
The contractor was paid the amount billed in transaction less a percent retainage.
The contractor submitted another progress billing for $ The billing, less retainage, was approved.
Investments totaling $ were redeemed, together with additional interest income of $
The contractor was paid the amount billed in transaction less a percent retainage.
Interest income of $ was accrued.
Bond interest totaling $ was paid.
Use the preceding information to do the following:
a Prepare the journal entries necessary to record these transactions in a Capital Projects Fund for the City of Spainville.
b Prepare a trial balance for the fund as of June before closing.
c Prepare any necessary closing entries. The general obligation bond proceeds and federal grant revenues are restricted by the debt covenant and the federal government for construction
of the city hall complex. Neither the debt covenant nor the federal grant makes any mention of how investment earnings on their money should be used. Based on authority granted it by the city council,
the City of Spainville's management has decided to use the investment earnings for construction of the city hall complex or if not needed for construction, for debt service.
d Prepare a statement of revenues, expenditures, and changes in fund balance for the year ended June and a balance sheet as of June
e Prepare the journal entry or entries necessary to record the remainder of the budget and to reestablish the budgetary accounts for encumbrances as of July Assume investment revenues of $ are expected in the fiscal year.
Note: If no journal entry is necessary, select the no entry required debit and no entry required credit for the account names and record zero for the debit and credit amounts.Journal entries, financial statements, and closing entries for a Capital Projects Fund
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