You will be providing 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. The asset will eventually appear in the GCA when the project is built.

You will not be making budgetary entries nor closing entries during this test. You will not be making the adjusting entry to reclassify the amount of principle and premium due in the coming year to current liability accounts.

Record amounts in dollars only (no cents).

Wilkes County's fiscal year is from July 1 to June 30.

Wilkes County is going to build and maintain a new civic Center on land it purchases. It is expected that the project will take 2 years to complete.

The expected revenues are as follows:

Bond Proceeds................................................................... 624,600

Property Tax Revenues (collected over 2 years)........................ 210,000

State Grant (5% of the cost, up to 75,000)................................ 75,000

Federal Grant (25% of cost, up to $375,000)............................. 375,000

Private Expenditure Grant (1/2 each year.).............................. 100,000

Private Donations................................................................ 115,400

Total Resources.................................................................. 1,500,000

Transactions

1. July 15, Year 1: Private Donations, 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

1. Aug. 15, Year 1: The $600,000 bond issue to finance the Civic center is issued at a premium of $24,600 and the money was received. The Bonds are 10 year semiannual bonds at 4.5%, with payments due on Aug. 15 and Feb.15. The costs to issue the bonds are $3,500.

CPF GLTL

1. Aug. 30, Year 1: The net assessed value of all the property in the County is $50,000,000 according to the property appraiser. In the past, uncollectible property taxes averaged 1 % of the levy. You need $105,000 of Revenues -Property Taxes for the Civic center. You levy the tax for the Civic center (along with the rest of the property taxes but I only need you to record the levy for the Civic center in the CPF). n (1-0.015) =105000----prop. Tax levy(n) =105000/0.985= $106,598.985

CPF

1. Aug. 30, Year 1: $76,000 was transferred by the General Fund to the Debt Service Fund for bond payments for the next year. $30,000 was invested by the DSF.

DSF

1. Mr. Mercer donates 2 acres of land to the County for the Civic center on Sept. 20. He paid $50,000 for it many years ago. The FMV of the land is now $75,000.

CPF

1. During the month of September, the county paid an architect $55,000 to draw up plans for the project and signed a contract with Williamson Construction to begin work on the Civic center. The contract was for a total of $1,350,000. There will be a 7% retained percentage which will be held back from the final payment. 25% of Private donations received.

CPF

1. Feb. 15, Year 1: Payment of $38,000 was made on bond: $ $23,947 on principal, interest $12,155 and the rest is amortization of bond premium. Don't forget the effect on the GLTL (principal payable and premium reduced).

DSF GLTL

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

Estimated and Actual:

Plumbing...... 43,000

Structure....... 320,000

Electrical...... 195,000

Landscaping.. 48,000

CPF

1. Apr. 1, Year 1: The Invoices were paid in #8.

CPF

1. $106,000 in Property Taxes were collected by year's end. Current Taxes receivable and the related allowance were reclassified as delinquent after the due date. You are going to recognize some revenue because you collected more than you estimated (take it out of the allowance account which you used to reduce your revenues, see #3.). (Don't worry about deferring revenues.) County sent proof of expenditures to Private Grantor.

CPF

1. June 30, Year 1: Investments paid $9.5% return and increased 4% in value.

DSF

1. June 30, Year 1: The asset was recorded in the GCA. (Don't forget land.)

GCA

Year 2

1. Aug. 1, Year 2: The investments are sold for $36,500. Don't forget the adjustment for FMV made last year when determining the book value of the investments.

DSF

1. Aug. 15, Year 2: The second bond payment of $38,000 is paid: $ $24,528 on principal, interest $11,652 and the rest is amortization of bond premium. Don't forget the effect on the GLTL (principal payable and premium reduced).

DSF GLTL

1. Aug. 30, Year 2: The net assessed value of all the property in the County is $50,000,000 according to the property appraiser. In the past, uncollectible property taxes averaged 1 % of the levy. You need $105,000 of Revenues -Property Taxes for the Civic center. You levy the tax for the Civic center (along with the rest of the property taxes but I only need you to record the levy for the Civic center in the CPF).

50% Private Grant received. 25% of Private donations received.

CPF

1. Aug. 30, year 2: $76,000 by the General Fund is transferred to the DSF for interest and principal payments for the next year. $30,000 is invested by the DSF.

DSF

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

Estimated: Actual:

Plumbing...... 41,000 21,000

Structure....... 318,000 360,000

Electrical...... 285,000 195,000

Landscaping.. 100,000 92,000

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

CPF

1. Feb. 15, year 2: Payment of $38,000 was made on bond: $ $25,120 on principal, interest $11,140 and amortization of bond premium. Don't forget the effect on the GLTL (principal payable and premium reduced).

DSF GLTL

1. Feb. 28: Payment on the vouchers in #17 were made. Proof of expenditures were sent to Private Grantor. 25% of Private donations received.

CPF

1. 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 reimbursable by the State but not the Federal grants. Inspection fees will be capitalized in the GCA in #21. (only want the CPF journal entry at this time.)

CPF

1. Mar. 30, Year: 2: The new park and the facilities were approved by the inspector and accepted by Wilkes County. It was ordered that:
   1. The retained percentage be paid to the contractor in #17.
   2. The inspector be paid in #20.
   3. $104,000 of property taxes were received. Current Taxes receivable and the related allowance were reclassified as delinquent after the due date. (Don't worry about deferring revenues.)
   4. Return monies due to State and Federal Government
   5. The remaining cash from the CPF be transferred to a special revenue fund for maintenance and future improvements.
   6. The Civic center is recognized in the GCA. Don't forget to convert the unfinished portion to the finished Civic center.

CPF GCA

(Don't worry about transferring the delinquent tax accounts.)

Hints:

Capital projects fund has no capital assets at years end.

Keep track of the cash so you know if you have to return any of it. You have to return any of it you have not spent to grants which pay percentages of expenses.

When you are done, the remaining cash must be transferred out of the capital projects fund.

Watch your timing on when to recognize revenues. Sometimes it is when you receive the funds, sometimes it is when you levy taxes, sometimes it is when you expend the money and sometimes it is when you send proof that you expended the money.

At the end of the year, you recognize any capital assets you constructed or bought and any capitalizable expenditures in the General Capital asset fund either as construction in progress or the asset (both of which increase your Net Position). There is no cash in the GCA.

All expenditures concerning debt (principal, interest, premium/discount on bond) are made in the DSF.

Reduction of debt (principal and premium/discount on bond) is accounted for in GLTL. No interest expenditure in GLTL. No cash in GLTL.

Investment income can be comprised of interest, FMV adjustments at end of year, and gains/losses. Interest income is accounted for in DSF.

General Long Term Liabilities (GLTL)

Prob	Date	Account	Dr.	Cr.
2	Aug. 15
		To record issuance of bonds
7	Feb. 15
		To record maturing of principle and premium
14	Aug. 15
		To record maturing of principle and premium
18	Feb. 15
		To record maturing of principle and premium

Debt Service Fund (DSF)

Prob	Date	Account	Dr.	Cr.
4	Aug. 30
		Transfer from GF
		Record purchase of investments
7	Feb. 15
		Record payment for semi-annual bond
11	June 30
		Record adjustment in value of investments and payment of interest
Prob	Date	Debt Service Fund Continued	Dr.	Cr.
13	Aug. 1
		Record sale of Investments
14	Aug. 15
		Record payment for semi-annual bond
16	Aug. 30
		Transfer from GF
		Record purchase of investments
18	Feb. 15
		Record payment for semi-annual bond

General Capital Asset Fund

Prob	Date	Account	Dr.	Cr.
12	June 30
		Record the park at the end of year 1
18	Mar. 30
		Record the park on completion

Capital Projects Fund

Prob	Date	Account	Dr.	Cr.
1	July 15
		To record private donations & grants (private, State, & Federal)
2	Aug.15
		To record sale of bonds with premium
3	Aug. 30
		To levy taxes
5	Sept. 20
		To record gift of land
6	Sept.
		To record expenditures incurred and recognize revenues
		Contract is signed
		Receipt of private donations
8	Mar. 1
		To record expenditures incurred and recognize revenues
Prob	Date	Account	Dr.	Cr.
9	Apr. 1
		To record cash disbursements
10	June 30
		To record cash receipts & revenues associated with property taxes
		To record delinquent taxes
		Sent receipts to private grant
		YEAR 2
15	Aug. 30
		To levy the taxes
		To record cash receipts
17	Jan. 30
		To record expenditures incurred and recognize revenues
19	Feb. 28
		To record cash disbursements
		Receipts sent to private grant
Prob	Date	Account	Dr.	Cr.
		Receipt of contributions
20	Mar. 15
		Record expenditures incurred and revenues
21	Mar. 30
		Payment of retainage
		Payment of inspection fees to GF
		To record cash receipts
		To record delinquent taxes
		To record payment of reimbursement to State & Federal Gov'ts.
		Transfer of remaining Cash to SRF