Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

This year Riverside began work on an outdoor amphitheater and concession stand at the city's park. It is to be financed by a $4,500,000

image text in transcribedimage text in transcribedimage text in transcribed

This year Riverside began work on an outdoor amphitheater and concession stand at the city's park. It is to be financed by a $4,500,000 bond issue and supplemented by a $600,000 General Fund transfer. The following transactions occurred during the current year: 1. The General Fund transferred $600,000 to the Park Building Capital Projects Fund. 2. A contract was signed with Restin Construction Company for the major part of the project on a bid of $3,700,000. 3. Preliminary planning and engineering costs of $79,000 were vouchered for the Great Pacific Engineering Company. (This cost had not been encumbered.) 4. A payable was recorded for an $23,500 billing from the Water and Sewer enterprise fund for the cost of extending water pipes to the new concession stand. 5. An invoice in the amount of $1,500,000 was received from Restin for progress to date on the project. 6. The $4,500,000 bonds were issued at par. 7. The amount billed by the contractor (see Transaction 5) less 5 percent retained was paid. 8. Temporary investments were purchased at a cost of $1,900,000. 9. Closing entries were prepared as of year-end. Assume that $3,000,000 of the encumbrances outstanding will be paid from the bond proceeds and are therefore considered restricted resources. The remaining fund balance is assigned.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Financial Accounting

Authors: Fred Phillips, Robert Libby, Patricia Libby

5th edition

78025915, 978-1259115400, 1259115402, 978-0078025914

More Books

Students also viewed these Accounting questions