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Homework answers / question archive / The citizens of Spencer County approved the issuance of $2,016,000 in 6 percent general obligation bonds to finance the construction of a courthouse annex

The citizens of Spencer County approved the issuance of $2,016,000 in 6 percent general obligation bonds to finance the construction of a courthouse annex

Accounting

The citizens of Spencer County approved the issuance of $2,016,000 in 6 percent general obligation bonds to finance the construction of a courthouse annex. A capital projects fund was established for that purpose. The preclosing trial balance of the courthouse annex capital project fund follows:

Trial Balance—December 31, 2020 Debits  Credits

Cash $912,000 

Contract payable     $555,000 

 Due from state government  200,000     

 Encumbrances  112,000      

Expenditures—capital  1,858,000     

 Intergovernmental grant      399,000  

OFS: premium on bonds      61,000 

 OFS: proceeds sale of bonds      2,016,000 

 Budgetary fund balance—Reserve for encumbrances      112,000  

OFU: Transfer out  61,000     

$3,143,000   $3,143,000

a. any closing entries necessary at year-end.

b.Prepare Statement of Revenues, Expenditures, and Changes in Fund Balance for the courthouse annex capital project fund.

c.Prepare Balance Sheet for the courthouse annex capital project fund, assuming all unexpended resources are restricted to construction of the courthouse annex.

 

Transaction List:

  • Record the closing entry to transfer revenue and expenditure to fund balance.
  • Record the entry for transfer of encumbrances.

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