Residents from the Town of Mountain View authorized a $7,400,000 renovation to their historic town hall on November 15, 2019. Financing for the project consists of $2,800,000 from a 5 percent serial bond issue, $2,400,000 from a state grant, and $2,200,000 from the General Fund. Debt service for the serial bonds will be provided by a one-quarter-cent city sales tax imposed on every dollar of sales in the city. The town has a calendar year-end.

Required Prepare journal entries to record the related transactions in the towns capital projects fund, debt service fund, and governmental activities at the government-wide level.

n. Sales tax collections for debt service amounted to $280,000. n Debt Service fund Capital Projects Fund Governmental Activities o. Central Paving and Construction submitted a final billing to the town for $2,200,000. Upon final inspection by the Public Works Department, a leak was discovered in the roof. Debt Service fund Record the reversal of encumbrances for the progress to date on the project and also the construction expenditure for the invoice received. Capital Projects Fund Governmental Activities p. Public Works employees installed a new sidewalk and landscaping at a total cost of $140,000. Debt Service fund Capital Projects Fund Governmental Activities 9. The roof leak was repaired satisfactorily, and the city paid the final billing and all retainages. g Debt Service fund Capital Projects Fund Governmental Activities r. The April 1 debt service payments are made. Debt Service fund Capital Projects Fund Governmental Activities s. The renovation is considered complete and appropriate amounts are reclassified as buildings and improvements other than buildings (i.e., landscaping). s(1) Debt Service fund Cash 112,000 Other Financing SourcesPremium on Bonds Payable 112,000 s(2) All capital projects fund nominal accounts are closed, and remaining cash in the capital projects fund is transferred to the debt service fund. (Remember to amend the debt service fund budget because this transfer was not anticipated.) Estimated Other Financing Sources-Interfund Transfers In 120,000 Budgetary Fund Balance 120,000 s(3) Capital Projects Fund Record the receipt for debt service payments. Cash Premium on Bonds Payable Bonds Payable S(4) Record the transfer of capital project funds to the debt service fund. s(5) Record the closing entry after transfer out. s(6) Governmental Activities Record the closing entry and reclassify the appropriate amounts. n. Sales tax collections for debt service amounted to $280,000. n Debt Service fund Capital Projects Fund Governmental Activities o. Central Paving and Construction submitted a final billing to the town for $2,200,000. Upon final inspection by the Public Works Department, a leak was discovered in the roof. Debt Service fund Record the reversal of encumbrances for the progress to date on the project and also the construction expenditure for the invoice received. Capital Projects Fund Governmental Activities p. Public Works employees installed a new sidewalk and landscaping at a total cost of $140,000. Debt Service fund Capital Projects Fund Governmental Activities 9. The roof leak was repaired satisfactorily, and the city paid the final billing and all retainages. g Debt Service fund Capital Projects Fund Governmental Activities r. The April 1 debt service payments are made. Debt Service fund Capital Projects Fund Governmental Activities s. The renovation is considered complete and appropriate amounts are reclassified as buildings and improvements other than buildings (i.e., landscaping). s(1) Debt Service fund Cash 112,000 Other Financing SourcesPremium on Bonds Payable 112,000 s(2) All capital projects fund nominal accounts are closed, and remaining cash in the capital projects fund is transferred to the debt service fund. (Remember to amend the debt service fund budget because this transfer was not anticipated.) Estimated Other Financing Sources-Interfund Transfers In 120,000 Budgetary Fund Balance 120,000 s(3) Capital Projects Fund Record the receipt for debt service payments. Cash Premium on Bonds Payable Bonds Payable S(4) Record the transfer of capital project funds to the debt service fund. s(5) Record the closing entry after transfer out. s(6) Governmental Activities Record the closing entry and reclassify the appropriate amounts