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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
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:
- The General Fund transferred $500,000 to the Senior Center Capital Projects Fund.
- A plot of land was purchased for $400,000 in cash. (This cost had not been encumbered.)
- Preliminary planning and engineering costs of $95,000 were vouchered. (This cost had not been encumbered.)
- A contract was signed with Sunset Construction Company for the major part of the project on a bid of $4,950,000.
- The $5,000,000 bonds were issued at par.
- Temporary investments were purchased at a cost of $3,500,000.
- 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.)
- An invoice in the amount of $1,500,000 was received from Sunset Construction Company for progress to date on the project.
- The amount billed by the contractor less 5 percent retainage was paid.
- Half of the planning and engineering costs and $25,000 of the water and sewer billing were paid.
- Grant revenue of $100,000 was received in cash for construction expenditures that were considered allowable costs in accordance with the grant agreement.
- 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.
Prepare a balance sheet for the Senior Center Capital Projects Fund as of year-end.
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