Question
The attached transactions took place for a capital project for the Town of Sienna during the fiscal years 20X3 and 20X4. The town uses the
The attached transactions took place for a capital project for the Town of Sienna during the fiscal years 20X3 and 20X4. The town uses the calendar year as their fiscal year.
(1)Using the attached forms, prepare all journal entries, in proper form, both budgetary and actual, including closing entries, to record the transactions for the capital projects fund for 20X3. Use the letter of the transaction as the date where available. Omit explanations.
(2)Using the attached form, prepare a balance sheet, in proper form, for the capital projects fund as of December 31, 20X3.
(3)Using the attached forms, prepare all journal entries, in proper form, including closing entries, to record the transactions for the capital projects fund for 20X4. Use the letter of the transaction as the date where available. Omit explanations.
(4)Using the attached form, prepare a statement of revenues, expenditures, and changes in fund balances, in proper form, for the capital projects fund for the year ending December 31, 20X4.
| TOWN OF SIENNA TRANSACTIONS FOR CAPITAL PROJECTS FUND FOR FISCAL YEAR ENDING DECEMBER 31, 20X3 |
(a) | A bond issue of $12,000,000 was authorized for the construction of a library, and the estimated bond issue proceeds and related appropriations were recorded in the general ledger accounts of a new Capital Projects Fund. |
(b) | The bonds were sold at a premium of $90,000. |
(c) | The cost of issuing the bonds, $80,000, was paid. |
(d) | An order was placed for materials estimated to cost $6,500,000. |
(e) | Salaries and wages of $500,000 were paid for construction of the capital project. |
(f) | The premium, net of bond issuance costs, was transferred to a Debt Service Fund. |
(g) | Made the closing entries for the fund for fiscal year 20X3. |
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| The following transactions took place for the capital project during 20X4. |
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| TOWN OF SIENNA TRANSACTIONS FOR CAPITAL PROJECTS FUND FOR FISCAL YEAR ENDING DECEMBER 31, 20X4 |
(h) | The materials ordered were received. The actual cost of the materials was $6,585,000. |
(i) | Salaries and wages of $4,010,000 were paid for construction of the capital project. |
(j) | All outstanding bills were paid. |
(k) | The project was completed. The accounts were closed, and the remaining balance, if any, was transferred to a Debt Service Fund. |
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