Recording Capital Asset Transactions JE questions Part 1 and Part 2 , you can look it attachmentplease!

Street Improvement Capital Projects Fund and Governmental Activities at the

Government-wide Level

During late 2016, the voters of the City of Smithville authorized tax-supported bond

issues totaling $8,000,000 as partial financing for a series of projects to construct streets,

curbs, culverts, and storm sewers in various parts of the city. The estimated total cost of

the series of projects, which are expected to extend over the next three years, was

$10,200,000. In addition to the bond financing, voters also approved a special cent

sales tax to assist in financing the projects. The sales tax begins January 1, 2017 and will

continue for five years. The sales tax is projected to generate $500,000 each year

Chapter 5 Recording Capital Asset Transactions Street Improvement Capital Projects Fund and Governmental Activities at the Government-wide Level During late 2016, the voters of the City of Smithville authorized tax-supported bond issues totaling $8,000,000 as partial financing for a series of projects to construct streets, curbs, culverts, and storm sewers in various parts of the city. The estimated total cost of the series of projects, which are expected to extend over the next three years, was $10,200,000. In addition to the bond financing, voters also approved a special cent sales tax to assist in financing the projects. The sales tax begins January 1, 2017 and will continue for five years. The sales tax is projected to generate $500,000 each year. I created like this. Please verify and correct some mistake. Part 1 : q1-7 only Required a. Prepare general journal entries as necessary to record the transactions described below in the Street Improvement Fund general journal and, if applicable, in the governmental activities general journal. Do not record entries at this time in other affected funds; those entries will be made in the later chapters of this cumulative problem that cover the affected funds. Use account titles listed under the drop down [Account (# - Description)] menu. Be sure the year 2017 is selected from the dropdown [Year] menu and the appropriate paragraph number shown in bold-face font below is in the [Transaction Description] box. 1. [Para. 5-a-1] In early 2017, design plans and specifications for the first project, the Elm Street Project, were submitted by a construction engineering firm. The firm billed the Street Improvement Fund for $125,000. Required: Record this billing and the related Vouchers Payable liability in the Street Improvement Fund and governmental activities journals. (Note: this transaction was not encumbered.) 2. [Para. 5-a-2] On March 1, 2017, the city signed a $40,000, 90-day tax anticipation note bearing interest of 2.5 percent per annum. Required: Record this transaction in the Street Improvement Fund and governmental activities journals. 3. [Para. 5-a-3] A $335 purchase order for advertisements soliciting bids for the Elm Street Project was issued during April 2017. The bill for advertising in the amount of $330 was received and a voucher for payment was issued Required: Record the encumbrance, billing, and the Vouchers Payable liability in the Street Improvement Fund and governmental activities journals, as appropriate. 4. [Para. 5-a-4] On April 15, 2017, construction bids were opened and analyzed. A bid of $2,100,000 was accepted, and the contract was awarded for the Elm Street Project. The contract provided for a retained percentage of 5 percent from each progress payment, and from the final payment, until final inspection and acceptance by the city's public works inspectors. Required: Record the signing of the contract in the Street Improvement Fund general journal. This transaction has no effect at the government-wide level. . 5. [Para. 5-a-5] Sales tax revenue of $190,000 was received. Required: Record this transaction in both the Street Improvement Fund and governmental activities general journals. 6. [Para. 5-a-6] Vouchers payable accumulated to date were paid in April 20, 2017. Required: Record this transaction in both the Street Improvement Fund and governmental activities general journals. 7. [Para. 5-a-7] On May 6, 2017, 4% deferred serial bonds with a face value of $2,000,000 were sold for a total amount of $2,070,000, of which $28,000 was for accrued interest from the January 1, 2017 date of the bonds and $42,000 was a premium on the bonds sold. Cash in the amount of the accrued interest and premium was deposited directly in the Street Improvement Bond Debt Service Fund. Cash in the amount of $2,000,000 was deposited and recorded in the Street Improvement Fund. Required: Record these transactions in the Street Improvement Fund and governmental activities journals. (Hint: In addition to recording the liability for bonds payable in the governmental activities journal, you should record the premium on the bonds payable [credit Premium on Deferred Serial Bonds] and accrued interest on bonds sold [we recommend that you credit ExpenseInterest on Long-term Debt] in the governmental activities general journal for the $28,000 of accrued interest.) For now you should not make the entries in the Street Improvement Bond Debt Service Fund to record the accrued interest and premium. Those entries will be made in Chapter 6 of this cumulative