Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The voters of the City of Monroe approved the issuance of tax-supported bonds in the face amount of $4,000,000 for the construction and equipping of
The voters of the City of Monroe approved the issuance of tax-supported bonds in the face amount of $4,000,000 for the construction and equipping of a new City Jail. Architects were to be retained, and construction was to be completed by outside contractors. In addition to the bond proceeds, a $1,335,000 grant was expected from the state government. The bond issue requires principal payments of $200,000 due annually over a 20-year period commencing January 1, 2025. Interest payment dates are July 1 and January 1. 9. 10. n. 12. 13. 14. 15. 16. . On January 1, 2024, the bonds bearing an interest rate of 8 percent were sold at a $200,000 premium. The first interest payment will be July 1, 2024. The premium was transferred to the City Jail Debt Service Fund for the future payment of principal on the bonds. . The receivable from the state government was recorded. . Legal and engineering fees early in the project were paid in the amount of $120,000. This amount had not been previously encumbered.. . The city signed a contract with local architects at an agreed upon fee of $250,000 to be paid as work is completed. . Preliminary plans were approved, and the architects were paid $50,000 (20 percent of the fee). . The complete plans and specifications were received from the architects and approved. After receiving an invoice, $175,000 of the original contract was approved and paid to the architects. . Bids were received and opened in public session. After considerable discussion in City Council, the low bid from Hardhat Construction Company in the amount of $4,500,000 was accepted, and a contract was signed. . The contract requires periodic payments. An invoice of $1,350,000 is received and the invoice amount was approved and entered into accounts payable with the exception of a 10 percent retainage. (Use a separate liability \"Contract payable\" for the portion held back.) Cash in the full amount of the grant was received from the state government. Furniture and equipment for the annex were ordered at a total cost of $459,500. Payment was made to the contractor for the amount previously recorded in accounts payable (see 8 above). The contractor completed construction and requested payment of the balance due on the contract. After inspection of the work, the amount, including the past retainage, was approved for payment and then paid. The furniture and equipment (previously ordered) were received at a total actual installed cost of $459,300. Invoices were approved for payment. The remainder of the architects' fees ($25,000) was approved for payment. The City Jail Construction Fund paid all outstanding accounts payables ($484,300) on December 31, 2024. The remaining cash was transferred to the City Jail Debt Service Fund. . Post the entries to the City Jail Construction Fund general ledger. . Prepare an entry closing all nominal accounts to Fund Balance and post entries into the appropriate T-accounts
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started