The City of Oxford, Mississippi (population just under 24,000) passed a bond issue for $2,500,000, 4.5 percent, semiannual interest, 10 year bonds to finance the construction of a second high school to be called Yoknapatawpha High, named in memory of the Pulitzer Prize winning author, William Faulkner. The State also contributed $110,000 for construction of the gymnasium. The contractor selected then submitted her contract for $2,080,000 to commence on January 2, 2019, with the project's estimated completion in late 2019. 11. The contractor submitted her signed contract to the City of Oxford. The entry to record the contract in the Capital Projects Fund would include a: A. Debit to Encumbrances2019, $2,500,000. B. Debit to Construction Work-in-Progress, $2,080,000. C. Credit to Encumbrances2019, $2,080,000. D. Credit to Encumbrances Outstanding2019, $2,080,000 3 12. The money from the State of Mississippi of $110,000 was received by the City of Oxford's General Fund. The monies were then transferred from the General Fund to the Capital Project Fund. The entry in the General Fund receiving the grant money from the state would include a: A Credit to Program Revenues Public Education Capital Grants and Contributions, $110,000 B. Credit to Revenues, $110,000. C. Debit to Other Financing UsesTransfers-out, $110,000. D. Credit to Other Financing UsesTransfers-in, $110,000. 13. The entry in the General Fund transferring the state monies to the Capital Projects Fund would include a: A Debit to Cash, $110,000. B. Credit to Cash, $110,000 C. Debit to Other Financing Sources, $110,000. D. Credit to Other Financing Uses, $110,000. 14. The entry in the Capital Projects Fund receiving the transferred state monies from the General Fund would include a: A. Credit to Other Financing Sources, $110,000. B. Debit to Other Financing Uses, $110,000. C. Credit to Cash, $110,000. D. Credit to Grants Receivable, $110,000. 15. When the contractor submitted a $700,000 progress billing the following entry in the Capital Projects Fund would include: A. Debit to Encumbrances2019, $700,000. B. Credit to Cash, $700,000. C. Debit to Encumbrances Outstanding2019, $700,000. D. Debit to Construction-work-in progress, $700,000. 16. Assuming the partial billing was approved for payment and the expenditure and liability (contracts payable) was recorded for $700,000; however, Oxford has a policy of not paying 100 percent, but retaining 20 percent as a retained percentage. The entry in the Capital Projects Fund to record the allowed payment and retained percentage would include: A. Credit to Cash, $560,000. B. Debit to Contracts Payable, $560,000. C. Credit to Contracts Payable Retained Percentage, $560,000. D. Debit to Contracts Payable, $140,000. 4 17. Prior to the receipt of the bond proceeds, Oxford needed funds and went to United Southern Bank to borrow $600,000 in bond anticipation notes (BANs), at 5 percent, which were to be paid back using the proceeds of the $2,500,000 bond issue. The entry at the government-wide level to record the receipt of the bond anticipation notes would include a: A. Credit to Other Financing Sources-proceeds of BANs, $600,000. B. Debit to Cash, $1,900,000. C. Credit to Bonds Payable, $600,000 D. Debit to Cash, $600,000. 18. Assume the bond issue commences, and the $2,500,000 proceeds are received. Oxford repays the bond anticipation notes in full along with $7,500 in interest. The entry recorded in the Capital Projects Fund to repay the bond anticipation notes would include a: A. Debit to Other Financing UsesRetirement of BANS, $600,000. B. Credit to Cash, $600,000. C. Debit to Bond Anticipation Notes Payable, $600,000. D. Debit to Expenses Interest on Long-term Debt, $7,500. 19. Assume that at the conclusion of the construction project that the total costs totaled $3,200,000. This included some cost overruns. Assuming the high school passes all inspections and the asset is placed into service, the re-class entry to record the Building in the Capital Projects Fund would include: A. a Credit to Buildings, $3,200,000. B. a Debit to Buildings, $3,200,000. C. No entry would be recorded in the Capital Projects Fund. D. a Credit to Encumbrances2019, $3,200,000. The following facts relate to questions 20 through 28: Chapel Hill, North Carolina (population 57,000) issued $1,600,000, 20-year, 4 percent serial bonds on April 1, 2018 to finance construction of an addition to its city commerce center. The bonds pay interest each April 1 and October 1 every year, in addition, bond principal of $80,000 is redeemed each October 1. The interest and principal payments are transferred from the General Fund to the Debt Service Fund one day prior to the interest payment dates (3/31 and 9/30). Chapel Hill follows a calendar year for this problem. Hint: Draw a line chart with interest and principal dates and calculate the 2018 activity and 2019 activity. 20. The adoption of the FY 2019 budget in the Debt Services Fund would include a: A. Debit to Estimated Revenues, $60,800. B. Credit to Appropriations, $140,800. C. Debit to Estimated Other Financing Sources, $60,800. D. Credit to Fund Balance-Restricted, $140,800. 21. The Debt Services Fund would record the receipt of the transfer of funds from the General Fund on March 31, 2019 (for the April 1, 2019 interest payment). The March 31 entry in the Debt Services Fund would include a: A. Credit to Other Financing SourcesTransfers-in, $32,000. B. Debit to Cash, $30,400. C. Credit to Revenues, $30,400. D. Debit to Cash, $32,000. 22. The April 1, 2019 entry to record the serial bond interest payment in the Debt Services Fund would include a: A. Credit to Cash, $30,400. B. Debit to ExpendituresInterest, $32,000. C. Debit to Interest Payable, $30,400. D. Credit to Cash $15,200. 23. The April 1, 2019 entry to record the serial bond interest payment at the government-wide level would include a: A. Debit to Expenses Interest on Long-term Debt, $15,200. B. Debit to Interest Payable, $30,400. C. Credit to Cash, $15,200. D. Credit to Cash, $32,000. 24. The Debt Services Fund would record the receipt of the transfer of funds from the General Fund on September 30, 2019 (for the October 1, 2019 interest + principal payment). The September 30 entry in the Debt Services Fund would include a: A. Debit to Cash, $90,400. B. Credit to Other Financing SourcesTransfers-in $112,000. C. Debit to Expenditures2019, 112,000. D. Credit to Other Financing SourcesTransfers-in, $110,400. 25. The October 1, 2019 entry to record the serial bond interest and principal payment in the Debt Services Fund would include a: A. Credit to Cash, $108,800. B. Credit to Cash, $112,000. C. Debit to Bonds Payable, $80,000. D. Credit to Cash, $110,400. 26. The October 1, 2019 entry to record the serial bond interest and principal payment at the govemment-wide level would include a: A Debit to Interest Payable, $30,400. B. Debit to Expenses Interest on Long-term Debt, $28,800. C. Debit to Expenses-Bonds Payable, $80,000. D. Debit to ExpensesInterest on Long-term Debt, $30,400. 27. The December 31, 2019 entry at the government-wide level to record the accrued interest would include a: A Credit to Cash, $30,400. B. Debit to ExpensesInterest on Long-term Debt, $28,800. C. Debit to ExpensesInterest on Long-term Debt, $14,400. D. Credit to Interest Payable, $30,400. 28. On the City of Chapel Hill, NC Debt Services Fund, Statement of Revenues, Expenditures, and Changes in Fund Balances for the year ended. December 31, 2019, the following would be reported: A. ExpendituresInterest on Bonds, $60,800. B. Increase in Fund Balances, $60,000. C. Expenses-Long-term Interest on Bonds, $60,800. D. Revenues, $140,800