Question
Prepare JOURNAL ENTRIES for each of the following selected transactions which relate to a major capital construction project for the county during 2019: A. The
Prepare JOURNAL ENTRIES for each of the following selected transactions which relate to a major capital construction project for the county during 2019:
A. The county has budgeted $11,500,000 for the construction of a new library. The project is to be financed by a $10,000,000 bond issue, $1,000,000 from a federal grant (to cover 50% of the qualifying cost) and $500,000 to be transferred from the General Fund.
B. The $10,000,000 bond issue was sold at a bond price of 105 and bond issuance costs totaled $70,000. $10,000 of accrued interest was collected.
C. A construction contract was signed for $12,000,000. The county commissioners approved the increased cost and plan to finance the increase through a 5 year note with a local bank.
D. The county commissioners authorized that $100,000 be transferred to the Capital Project Fund.
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