Please answer parts a, b, and c. Show your work.
In fiscal 2019, the County of Clackamas, Oregon plans to issue $9,000,00o of 5 percent general obligation bonds to finance the expansion of the fire station plus equipment. Additional financing will be obtained from a federal grant. A capital projects fund will account for the activities relating to this project, and a debt service fund will account for resources used to make payments on the debt. The general fund will provide the resources to pay the annual interest payments. Suppose the following transactions occurred in each of the two years beginning face value October 1, 2018, and ending September 30, 2020 Fiscal 2019 1. October 2: A budget was established for the fire station project as follows: .. 1,000,000 Federal grant. 2. October 10: The general fund advanced $500,000 to cover planning activities. 3. O ctober 15: $250,o00 was spent for engineering and architectural work. The amount was not previ-ously encumbered 4. October 30: The general obligation bonds were issued at a total price of $9,090,00o. The bonds mature on October 30, 2028, and interest is paid yearly. The bond premium is legally restricted to be used for bond payments, and is accordingly transferred to the debt service fund 5. November 9: $800,000 of the federal grant proceeds was received. 6. December 1: Contracts were signed with several construction and fire equipment companies who will be responsible for various aspects of the proje ct. All contracts provide for a 1 o percent retainage. The contracts totaled $9,600,000. May 15: The advance from the general fund was repaid 8. September 30: Extensive work was done on the fire station during fiscal 2019, and the construction and equipment companies have submitted invoices in the amount of $8,200,000. $7,000,000 in cash has been paid as of year-end Fiscal 2020 1. October 2: $450,000 was transferred from the general fund to the debt service fund to cover its interest expenditure for the year. 2. October 30: Interest was paid on the bonds 3. January 12: The remainder of the federal grant was received by the capital projects fund. 4. June 15: Additional invoices totaling $1,400,00o were received, representing the final billings of the contractors. $1,640,000 in cash was paid to contractors. 5. July 25: The fire station was accepted by the city. All contractors were paid in full, and the remaining balance was transferred to the debt service fund to finance future payments on the bonds. Assume all resources of the capital project fund are restricted. Debt service fund resources are committed Required a. Prepare the journal entries, including closing entries, for the capital projects and debt service funds for fiscal 2019 and 2020. b. Prepare the balance sheet for the capital projects fund on September 30, 2019. c. Prepare the balance sheet for the debt service fund on September 30, 2020 In fiscal 2019, the County of Clackamas, Oregon plans to issue $9,000,00o of 5 percent general obligation bonds to finance the expansion of the fire station plus equipment. Additional financing will be obtained from a federal grant. A capital projects fund will account for the activities relating to this project, and a debt service fund will account for resources used to make payments on the debt. The general fund will provide the resources to pay the annual interest payments. Suppose the following transactions occurred in each of the two years beginning face value October 1, 2018, and ending September 30, 2020 Fiscal 2019 1. October 2: A budget was established for the fire station project as follows: .. 1,000,000 Federal grant. 2. October 10: The general fund advanced $500,000 to cover planning activities. 3. O ctober 15: $250,o00 was spent for engineering and architectural work. The amount was not previ-ously encumbered 4. October 30: The general obligation bonds were issued at a total price of $9,090,00o. The bonds mature on October 30, 2028, and interest is paid yearly. The bond premium is legally restricted to be used for bond payments, and is accordingly transferred to the debt service fund 5. November 9: $800,000 of the federal grant proceeds was received. 6. December 1: Contracts were signed with several construction and fire equipment companies who will be responsible for various aspects of the proje ct. All contracts provide for a 1 o percent retainage. The contracts totaled $9,600,000. May 15: The advance from the general fund was repaid 8. September 30: Extensive work was done on the fire station during fiscal 2019, and the construction and equipment companies have submitted invoices in the amount of $8,200,000. $7,000,000 in cash has been paid as of year-end Fiscal 2020 1. October 2: $450,000 was transferred from the general fund to the debt service fund to cover its interest expenditure for the year. 2. October 30: Interest was paid on the bonds 3. January 12: The remainder of the federal grant was received by the capital projects fund. 4. June 15: Additional invoices totaling $1,400,00o were received, representing the final billings of the contractors. $1,640,000 in cash was paid to contractors. 5. July 25: The fire station was accepted by the city. All contractors were paid in full, and the remaining balance was transferred to the debt service fund to finance future payments on the bonds. Assume all resources of the capital project fund are restricted. Debt service fund resources are committed Required a. Prepare the journal entries, including closing entries, for the capital projects and debt service funds for fiscal 2019 and 2020. b. Prepare the balance sheet for the capital projects fund on September 30, 2019. c. Prepare the balance sheet for the debt service fund on September 30, 2020
