You will be provided journals for the GLTL, DSF, CPF, and GCA. For each of the transactions, you will be directed where journal entries are needed. Please be aware of how the transaction is being reported in each fund. For example, when a bond is sold, the sale of the bond is recorded in the GLTL journal while the receipt of the money is recorded in the CPF, and the annual payments of principal and interest are made in the DSF and the retirement of the debt is recorded in the GLTL.

Wilkes Countys fiscal year is from July 1 to June 30.

Wilkes County is going to build and maintain a new pool and athletic facility on land it already owns (an old school). It is expected that the project will take 2 years to complete.

The expected revenues are as follows:

Bond Proceeds. 700,000

Private grant (Outright contribution to the project).. 750,000

State Grant (10% of the cost, up to 240,000).. 240,000

Federal Grant (25% of cost, up to $600,000).. 600,000

Private Donations. 110,000

Total Resources 2,400,000

Transactions

1) July 15, Year 1: Private Grant, State grant, and the Federal grant are received. Be careful about the conditions on each of the grants when recording the receipt of the funds.

CPF

2) Aug. 15, Year 1: The $700,000 bonds are issued to finance the athletic park at par and the money is received. The Bonds are a 10 year semiannual bonds at 6.5%, with payments due on Aug. 15 and Feb.15.

CPF GLTL

3) Aug. 30, Year 1: Half of the money due from private donations was received by the CPF. $96,290 was transferred to the Debt Service Fund for interest and principal payments for the next year. $40,000 was invested by the DSF.

CPF DSF

4) During the month of September, the county paid an architect $100,000 to draw up plans for the project and signed a contract with Williamson Construction to begin work on the park. The contract was for a total of $2,000,000. There will be a 5% retained percentage which will be held back from the final payment.

CPF

5) Feb. 15, Year 1: Payment of $48,145 was made on the bonds: $22,750 on principal and the rest was interest. Dont forget the effect on the GLTL.

DSF GLTL

6) Mar. 1, Year 1: Invoices were received and vouchered for the Williamson contract:

Estimated and Actual:

Plumbing 120,000

Structure. 500,000

Electrical 230,000

Landscaping..100,000

CPF

7) Apr. 1, Year 1: The Invoices were paid in #6.

CPF

8) June 30, Year 1: Investments paid $10% return and increased 6% in value.

DSF

9) June 30, Year 1: The asset was recorded in the GCA.

GCA

Year 2

10) Aug. 1, Year 2: The investments are sold for $55,000. Dont forget the adjustment for FMV made last year when determining the book value of the investments.

DSF

11) Aug. 15, Year 2: The second bond payment is paid. $21,925 on principal and the rest was interest.

DSF GLTL

12) Aug. 30, Year 2: The other half of the private donations is received.

CPF

13) Aug. 30, year 2: $96,290 is transferred to the DSF for interest and principal payments for the next year. $40,000 is invested by the DSF.

CPF DSF

14) Jan. 30, year, 2: The park is completed. Invoices were received and vouchered for the Williamson contract:

Estimated: Actual:

Plumbing 230,000 100,000

Structure. 600,000 700,000

Electrical 130,000 130,000

Landscaping.. 90,000 100,000

The holdback should be figured on the entire amount of the billings.

CPF

15) Feb. 15, year 2: Payment of $48,145 was made on bond: $21,072 on principal and the rest was interest. Dont forget the effect on the GLTL.

DSF GLTL

16) Feb. 28: Payment on the vouchers in #15 were made.

CPF

17) Mar. 15: Year 2: Inspection services were performed (internal services) by a department financed through the General Fund for a capital project, in the amount of $9,000. They are not reimbursable by the State nor Federal grants. Inspection fees will be capitalized in the GCA in #19. (only want the CPF journal entry at this time.)

CPF

18) Mar. 30, Year: 2: The new park and the facilities were approved by the inspector and accepted by Wilkes County. It was ordered that:

a) The retained percentage be paid to the contractor in #14.

b) The inspector be paid in #17.

c) The Federal and State governments be paid.

d) The remaining cash from the CPF be transferred to the DSF.

e) The Athletic Park be recognized in the GCA. Dont forget to convert the unfinished portion to the finished Park.

CPF DSF GCA

Compute all the journal entries.