Please give correct answers to part A,B,C & D

P. 6-5 e construction and financing phase of a special assessment project is accounted for in a capital projects fund, and the debt service phase is accounted for in a debt service fund (see the next problem). area. The estimated cost is $10.0 million. The project is to be funded with $8.5 million in special assessment Upon annexing a recently developed subdivision, a government undertakes to extend sewer lines to the bonds and a $1.0 million reimbursement grant from the state. an amount sufficient to pay both principal and interest on the debt. in a capital projects fund 1. It recorded the capital projects fund budget. It estimated that it would earn S0.20 million in interest on The balance is to be paid by the government out of its general fund. Property owners are to be assessed During the year, the government engaged in the following transactions, all of which would be recorded the temporary investment of bond proceeds, an amount that will reduce the required transfer from the general fund. It estimated that bond issue costs would be $0.18 million. It issued $8.5 million in bonds at a premium of $0.30 million and incurred SO.18 million in issue costs. The premium, net of issue costs, is to be transferred to a newly established debt service fund. It received the $1.0 million grant from the state, recognizing it as a liability until it incurred at least $1.0 million in construction costs It invested $7.62 million in short-term (less than one year) securities. It issued purchase orders and signed construction contracts for $9.2 million. It sold $5.0 million of its investments for $5.14 million, the excess of selling price over cost represent- 2. 3. 4. 5. 6. g interest earned. By year-end the investments still on hand had increased in value by $0.06 million, an amount also attributable to interest earned. It received invoices totaling $5.7 million. As permitted by its agreement with i retained (and recorded as a payable) S0.4 million pending satisfact the balance of $5.3 million. its prime contractor, it ory completion of the project. It paid 7. 8. It transferred $0.12 million to the debt service fund. did not close them because the project is not completed and its budget is for It updated its accounts, but the entire project, not for a single period. a. Prepare appropriate journal entries for the capital projects fund. 9. you compare actual and budgeted amounts c. Prepare a year-end (December 31) balance sheet. d. Does your balance sheet report the construction in process? If not, where might the construction process be recorded