Question
On 9/1/20 Franklin County sold bonds at par value in the amount of $14,000,000 to finance construction of a new library. On 10/10/20 Franklin County
On 9/1/20 Franklin County sold bonds at par value in the amount of $14,000,000 to finance construction of a new library. On 10/10/20 Franklin County entered into a contract with a private contractor to build a new library building in the amount of $13,000,000. On 12/1/20, when the contract was partially finished, the contractor submitted a bill for $7,000,000. The bill was paid on 12/15/20 less Franklin's standard 5% retention to assure any construction deficiencies are corrected. Franklin County operates on a December 31 fiscal year.
Required: Prepare the journal entries required in the Capital Projects Fund for the above transactions including closing entries.
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