P7-4 the following transactions and events relate to the Harmer Independent School District High School Building Capital Projects Fund during 20X6.

1. the school board appropriated $9,000,000 to constru t and landscape a new regional high school builiding to be financed as follows:

bond issue proceeds $6,000,000

federal grant (for 20% of cost).. 1,800,000

state grant 700,000

transfer from general fund 500,000

total 9,000,000

All of the following sources are restricted to high school construction related expenditures except the transfer from the General Fund that was from unassigned General Fund resources. Harmer's policy is to expend restricted resources before committed, assigned, or unassigned resources available for the same purpose. The appropriations made for the high school building were:

structure 5,000,000

plumbing and heating 1,800,000

electrical 1,300,000

landscaping 700,000

other 200,0000

total 9,000,000

2. contracts were let to private contractors:

structure 4,700,000

plumbing and heating 1,825,000

electrical 1,300,000

total 7,825,000

Thus, the plumbing and heating appropriations was increased 25,000 and the structure appropriation was decreased 300,000

3. cash receipts during 20X6 included: federal grant= 250,000; state grant= 350,000; bond issue proceeds (par 2,000,000)= 2,020,000; transfer from general fund = 100,000 total =2,720,000

the federal grant is for 20% of actual qualifying costs incurred(expenditure-driven) up to its $1,800,000 maximun, but the state grant is an outright contribution to the project. The remaining bonds authorized will be issued as needed. depending on market conditions; and the board authorized only part of the general fund transfer but is expected to authorize the remainder during 20X7.

4. invoices from contractors were received, approved, and vouchered for payment less a 5% retained percentage: structure= 2,000,000; plumbing and heating=500,000; electrical=700,000; other(not encumbered)=50,000 total= 3,250,000

5. The school board borrowed 150,000 for the project on a short term note from First State Bank of harmer

6. cash disbursements during 20X6 included: vouchers payable=2,600,000; Payroll: landscaping=120,000 other=80,000 total 200,000; machinery charges-landscaping=50,000 total 2,850,000

7. the school baord billed the federal government for the balance of its share of project costs incurred to date. payment from the federal agency is expected early in 20X7.

8. accured interest payable on the note at year end was 4000. Interest expenditures on this note are considered a project cost (other) but are not reimbursable under terms of the federal grant.

a. Prepare the journal entries to record 20X6 transactions and events in the General Ledger, Revenues Ledger, and Expenditures Ledger of the Harmer Independent school district high school building capital projects fund.