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Problem: capital projects fund financial statement and other questions Pinehurst County established a capital projects fund at the beginning of 2021 to construct a courthouse.

Problem: capital projects fund financial statement and other questions

Pinehurst County established a capital projects fund at the beginning of 2021 to construct a courthouse. The estimated cost of the courthouse was $3,530,000. Construction will be financed in the following manner:

  • Grant from the State $ 500,000
  • Issuance of general obligation (G.O.) serial bonds 3,000,000
  • Estimated revenue from interest on treasury bills 30,000

The following events relate to the County courthouse capital project:

  • County trustees approved the capital budget for the courthouse on January 5, 2021.
  • The referendum to issue $3,000,000 of general obligation bonds received voter approval in November, 2020. The bonds were issued for $3,060,000 on January 31, 2021. The County trustees authorized the transfer of the premium to a debt service fund. The transfer was made in February, 2021.
  • In early February, 2021, the architectural firm of Hudson and Judson was selected to draw the plans for the courthouse for a fee of $25,000. Plans were submitted in March, 2021, and the architectural firm was paid $25,000 in April, 2021.
  • $2,500,000 of the bond proceeds was invested in short-term treasury bills in April, 2021.
  • Pinehurst County signed a contract with Gleeson Construction for $3,420,000 in June, 2021.

It was estimated that it will take 12 months to complete construction of the courthouse.

  • In November, 2021, Pinehurst County received a bill from Gleeson Construction for

$1,200,000. Gleeson estimated that the courthouse was 35% complete.

  • Pinehurst received the $500,000 grant from the State in December, 2021.
  • $1,500,000 of treasury bills matured in December, 2021; interest income on the matured securities amounted to $15,000.
  • On December 30, 2021. Gleeson was paid the amount billed less a retainage of 10%.
  • Accrued interest income on the $1,000,000 of treasury bills held on December 31, 2021, amounted to $14,000. The interest will be received when the treasury bills mature in February, 2022. This interest is available to pay for construction expenditures incurred in 2021.

Required:

  1. Prepare, in good form, the statement of revenues, expenditures, and changes in fund balance for the County courthouse capital projects fund for the year ended December 31, 2021.image text in transcribed
Part 1: Statement of revenues, expenditures, and changes in fund balance for the courthouse capital projects fund for the year ended December 31, 2021. $ Part 1: Statement of revenues, expenditures, and changes in fund balance for the courthouse capital projects fund for the year ended December 31, 2021. $

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