Module Eight Homework

ACC-690

Question 11

Chasterfield County had the following transaction.

a. A budget is passed for all ongiong activities. Revenue is anticipated to be $834,000 with approved spending of $540,000and operating transfers out of $242,000.

b. A contract is signed with a construction company to build a new central office building for the government at the cost of $8 million. A budget for this project has been previously been recorded.

c. Bonds are sold for 8 million. (face value) to finance the construction of the new office building.

d.The new building is completed. An invoice for $8 million is received and paid.

e. Previously unrestricted cash of $1 million is set aside to begin paying the bonds issued in (c).

f. A portion of the bonds come due and $1 million is paid. Of this total,$ 100,000 represents interest. The interest, had not been previously accured.

g. Citizens' property tax levies are assessed. Total billing for this tax is $800,000. On this date, the assessment is a legally enforceable claim according to the laws of the state. The money to be received is designated for the current period and 90% is assumed to be collectible in this priod with receipt of an additional 6% during subsequent periods but in time to be available to pay current period claims. The remainder is expected to be uncollectible.

h. Cash of $120,000 is received from a toll road. This money is restricted for highway maintenance.

i. The county received investments valued at $300,000 as a donation from a grateful citizen. Income from these investments must be used to beautify local parks.

Prepare the entries first for fund financial statements and then for government-wide financial statements. (If no entry is required for a transaction/event, select"No journal entry required" in the first account field. Enter your answers in dollars not in millions.)

Fund Financial Statements

View transaction list View general journal

Journal Entry Worksheet

Record the budget for the year -General Fund.

Transaction General Journal Debit Credit

a.

*Enter debits before credits

done clear entry record entry

Government-Wide Financal Statements

view transaction list view general journal

Transaction General Journal Debit Credit

a. Allowance for uncollectible taxes