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Please, do not fill with existing answers , i will review This year Southfork began work on a senior center to hold activities for its
Please, do not fill with existing answers , i will review
- This year Southfork began work on a senior center to hold activities for its growing senior citizen population. It is to be financed by a $6,200,000 bond issue, a $620,000 grant, and a $620,000 General Fund transfer. The following transactions occurred during the current year:
- The General Fund transferred $620,000 to the Senior Center Capital Projects Fund.
- A plot of land was purchased for $460,000 in cash. (This cost had not been encumbered.)
- Preliminary planning and engineering costs of $107,000 were vouchered. (This cost had not been encumbered.)
- A contract was signed with Sunset Construction Company for the major part of the project on a bid of $6,150,000.
- The $6,200,000 bonds were issued at par.
- Temporary investments were purchased at a cost of $3,620,000.
- A payable was recorded for a $62,700 billing from the Water and Sewer enterprise fund for the cost of extending water pipes to the new building. (This cost had not been encumbered.)
- An invoice in the amount of $2,632,000 was received from Sunset Construction Company for progress to date on the project.
- The amount billed by the contractor less 5 percent retainage was paid.
- Half of the planning and engineering costs and $37,000 of the water and sewer billing were paid.
- Grant revenue of $220,000 was received in cash for construction expenditures that were considered allowable costs in accordance with the grant agreement.
- Closing entries were prepared as of year-end. Assume that $2,620,000 of the encumbrances outstanding will be paid from the bond proceeds and are therefore considered restricted resources. The remaining fund balance is assigned.
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Required
- Prepare journal entries to record the preceding information in the general ledger accounts for the Senior Center Capital Projects Fund.
- Prepare a statement of revenues, expenditures, and changes in fund balances for the period.
- Prepare a balance sheet for the Senior Center Capital Projects Fund as of year-end.
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