This year Southfork began work on a senior center to hold activities for its growing senior citizen population. It is to be financed by a $5,000,000 bond issue, a $500,000 grant, and a $500,000 General Fund transfer. The following transactions occurred during the current year:

1. The General Fund transferred $500,000 to the Senior Center Capital Projects Fund.
2. A plot of land was purchased for $400,000 in cash. (This cost had not been encumbered.)
3. Preliminary planning and engineering costs of $95,000 were vouchered. (This cost had not been encumbered.)
4. A contract was signed with Sunset Construction Company for the major part of the project on a bid of $4,950,000.
5. The $5,000,000 bonds were issued at par.
6. Temporary investments were purchased at a cost of $3,500,000.
7. A payable was recorded for a $49,500 billing from the Water and Sewer enterprise fund for the cost of extending water pipes to the new building. (This cost had not been encumbered.)
8. An invoice in the amount of $1,500,000 was received from Sunset Construction Company for progress to date on the project.
9. The amount billed by the contractor less 5 percent retainage was paid.
10. Half of the planning and engineering costs and $25,000 of the water and sewer billing were paid.
11. Grant revenue of $100,000 was received in cash for construction expenditures that were considered allowable costs in accordance with the grant agreement.
12. Closing entries were prepared as of year-end. Assume that $2,500,000 of the encumbrances outstanding will be paid from the bond proceeds and are therefore considered restricted resources. The remaining fund balance is assigned.

Required

1. Prepare journal entries to record the preceding information in the general ledger accounts for the Senior Center Capital Projects Fund.
2. Prepare a statement of revenues, expenditures, and changes in fund balances for the period.
3. Prepare a balance sheet for the Senior Center Capital Projects Fund as of year-end

available accounts to use in journal

B.

C.

Transaction General Journal Debit Credit 1. Record the $500,000 transfer from the General Fund to the Senior Center Capital Projects Fund. 1 Cash 500,000 Other Financing SourcesInterfund Transfers In 500,000 2. Record the purchased of a plot of land for $400,000 in cash. 2 Land Cash 400,000 400,000 3. Record the $95,000 preliminary planning and engineering costs incurred. 3 Construction Expenditures Vouchers Payable 95,000 95,000 4. Record the contract signing for the major part of the project on a bid of $4,950,000 No Journal Entry Required 4 5. Record the $5,000,000 issue of bonds at par. 5 Cash Other Financing SourcesProceeds of Bonds 5,000,000 5,000,000 6. Record the purchase of $3,500,000 temporary investments. 6 Construction Expenditures Cash 3,500,000 3,500,000 7. Record the $49,500 payable for extending water pipes to the new building. 7 Construction Expenditures Vouchers Payable 49,500 49,500 8. Record the receipt of $1,500,000 invoice for progress to date on the project 8 Construction Expenditures Contracts Payable 1,500,000 1,500,000 1,500,000 9. Record the payment of amount billed by the contractor less 5 percent retainage. 9 Contracts Payable Contracts Payable - Retained Percentage Cash 75,000 1,425,000 10. Record the payment of half of planning and engineering costs and $25,000 of the water and sewer billing. 10 Vouchers Payable 25,000 Contracts Payable 47,500 Cash 75,200 11. Record the receipt of Grant revenue of $100,000 for construction expenditures in line with the grant agreement 11 Cash 100,000 Revenues 100,000 12. Record the closing entries as of year-end assuming that $2,500,000 of the encumbrances outstanding will be paid. 12 Other Financing SourcesInterfund Transfers In 500,000 Other Financing SourcesProceeds of Bonds 5,000,000 Revenues 100,000 Land 400,000 1,500,000 47,500 Accumulated Depreciation Appropriations Bond Anticipation Notes Payable Bonds Payable Budgetary Fund Balance Building Capital Lease Obligations Payable Cash Construction Expenditures Construction Work in Progress Contracts Payable Contracts Payable - Retained Percentage Due to Other Funds Encumbrances Encumbrances Outstanding Estimated Revenues Expenses - Culture and Recreation Expenses - Interest on Bond Anticipation Notes Payable Fund Balance-Assigned Fund Balance-Restricted Fund Balance-Unassigned Gain on Sale of Machinery Interest Expenditures Interest Payable Investments Land Loss on Sale of Machinery Machinery and Equipment Other Financing Sources-Interfund Transfers In Other Financing Sources-Proceeds of Bonds Other Financing Sources-Proceeds of Bonds Anticipation Notes Other financing sources-Proceeds of Capital Asset Sale Other Financing Uses-Discount on Bonds Other Financing Uses-Interfund Transfers Out Other Financing Uses-Proceeds of Refunding Bonds Premium on Bonds Payable Program Revenue - Economic Development Program Revenues - Culture and Recreation Program Revenues - Public Safety Revenues Vouchers Pavable 100,000 SOUTHFORK Senior Center Capital Projects Fund Statement Of Revenues, Expenditures, and Changes in Fund Balances For the Year Ended Revenues $ Expenditures: Construction Expenditures Vouchers Payable Excess of Revenues Over (Under) Expenditures Other Financing Sources and Uses: 100,000 0 Excess of Revenues and Other Sources Over Expenditures Fund Balances, Beginning Fund Balances, Ending (100,000) 0 $ (100,000) SOUTHFORK Senior Center Capital Projects Fund Balance Sheet As of Year End Assets Land Building 0 Total Assets Liabilities and Fund Balances Liabilities: Construction Expenditures Vouchers Payable Contracts Payable 0 Total Liabilities Fund Balances: Total Fund Balances Total Liabilities and Fund Balances 0 Transaction General Journal Debit Credit 1. Record the $500,000 transfer from the General Fund to the Senior Center Capital Projects Fund. 1 Cash 500,000 Other Financing SourcesInterfund Transfers In 500,000 2. Record the purchased of a plot of land for $400,000 in cash. 2 Land Cash 400,000 400,000 3. Record the $95,000 preliminary planning and engineering costs incurred. 3 Construction Expenditures Vouchers Payable 95,000 95,000 4. Record the contract signing for the major part of the project on a bid of $4,950,000 No Journal Entry Required 4 5. Record the $5,000,000 issue of bonds at par. 5 Cash Other Financing SourcesProceeds of Bonds 5,000,000 5,000,000 6. Record the purchase of $3,500,000 temporary investments. 6 Construction Expenditures Cash 3,500,000 3,500,000 7. Record the $49,500 payable for extending water pipes to the new building. 7 Construction Expenditures Vouchers Payable 49,500 49,500 8. Record the receipt of $1,500,000 invoice for progress to date on the project 8 Construction Expenditures Contracts Payable 1,500,000 1,500,000 1,500,000 9. Record the payment of amount billed by the contractor less 5 percent retainage. 9 Contracts Payable Contracts Payable - Retained Percentage Cash 75,000 1,425,000 10. Record the payment of half of planning and engineering costs and $25,000 of the water and sewer billing. 10 Vouchers Payable 25,000 Contracts Payable 47,500 Cash 75,200 11. Record the receipt of Grant revenue of $100,000 for construction expenditures in line with the grant agreement 11 Cash 100,000 Revenues 100,000 12. Record the closing entries as of year-end assuming that $2,500,000 of the encumbrances outstanding will be paid. 12 Other Financing SourcesInterfund Transfers In 500,000 Other Financing SourcesProceeds of Bonds 5,000,000 Revenues 100,000 Land 400,000 1,500,000 47,500 Accumulated Depreciation Appropriations Bond Anticipation Notes Payable Bonds Payable Budgetary Fund Balance Building Capital Lease Obligations Payable Cash Construction Expenditures Construction Work in Progress Contracts Payable Contracts Payable - Retained Percentage Due to Other Funds Encumbrances Encumbrances Outstanding Estimated Revenues Expenses - Culture and Recreation Expenses - Interest on Bond Anticipation Notes Payable Fund Balance-Assigned Fund Balance-Restricted Fund Balance-Unassigned Gain on Sale of Machinery Interest Expenditures Interest Payable Investments Land Loss on Sale of Machinery Machinery and Equipment Other Financing Sources-Interfund Transfers In Other Financing Sources-Proceeds of Bonds Other Financing Sources-Proceeds of Bonds Anticipation Notes Other financing sources-Proceeds of Capital Asset Sale Other Financing Uses-Discount on Bonds Other Financing Uses-Interfund Transfers Out Other Financing Uses-Proceeds of Refunding Bonds Premium on Bonds Payable Program Revenue - Economic Development Program Revenues - Culture and Recreation Program Revenues - Public Safety Revenues Vouchers Pavable 100,000 SOUTHFORK Senior Center Capital Projects Fund Statement Of Revenues, Expenditures, and Changes in Fund Balances For the Year Ended Revenues $ Expenditures: Construction Expenditures Vouchers Payable Excess of Revenues Over (Under) Expenditures Other Financing Sources and Uses: 100,000 0 Excess of Revenues and Other Sources Over Expenditures Fund Balances, Beginning Fund Balances, Ending (100,000) 0 $ (100,000) SOUTHFORK Senior Center Capital Projects Fund Balance Sheet As of Year End Assets Land Building 0 Total Assets Liabilities and Fund Balances Liabilities: Construction Expenditures Vouchers Payable Contracts Payable 0 Total Liabilities Fund Balances: Total Fund Balances Total Liabilities and Fund Balances 0