In Fulbright County, the Parks and Recreation Department constructed a library i

Question

In Fulbright County, the Parks and Recreation Department constructed a library in one of the county’s high growth areas. The construction was funded by a number of sources. Below is selected information related to the Library Capital Project Fund. All activity related to the library construction occurred within the 2017 fiscal year.

Prepare a journal entry for capital projects fund and governmental activities at the government-wide level.(If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

1. The county issued $7,900,000, 6 percent bonds, with interest payable semiannually on June 30 and December 31. The bonds solld for 101 on july 30, 2016. Proceeds from the bonds were to be used for construction of the library, with all interest and premiums received to be used to service the debt issue. Assume the premium and interest are recorded directly in the debt service fund.

Capital Project fund:

Government Activities:

2. A $840,000 federal grant was receive to help finance construction of the library.

Prepare a journal entry for capital projects fund and governmental activities at the government-wide level.(If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

1. The county issued $7,900,000, 6 percent bonds, with interest payable semiannually on June 30 and December 31. The bonds solld for 101 on july 30, 2016. Proceeds from the bonds were to be used for construction of the library, with all interest and premiums received to be used to service the debt issue. Assume the premium and interest are recorded directly in the debt service fund.

Capital Project fund:

Government Activities:

3. The library special revenue fund transferred $440,000 for use in construction of the library.

Capital Project fund:

Government Activities:

4. A construction contract was awarded in the amount of $6,990,000

Capital Project fund:

Government Activities:

5. The library was completed on June 1, 2017, four months ahead of schedule. Total construction expenditures for the library amounted to $9,160,500. When the project was completed, the cost of the library was allocated as follows. $295,000 to land, $6,390,000 to building to building, and the remainder to equipment.

5a. Capital projects fund: Record the completion of construction of the library

5b. Capital projects fund: Record the payment upon completion of capital project.

5c. Govermenatal activities: Record the completion of construction of the library

5d Governmental activities: Record the capitalization of each item.

6. The capital projects fund temporary accounts were closed to fund balance-- restricted. The resources are restricted because they were obtained from bonded debt issued exclusively for library construction. The capital projects fund were closed by transferring remainin funds to the debt service fund for use in library construction debt repayment.

6a Capital Project fund: close the completion of construction of the library

6b Capital project fund: Record the transfer to the debt service fund.

6c Capital project fund: Close the remaining temporary account to Fund Balance- restricted.

6d. Governmental activities:

These are my options

No Journal Entry Required

Accumulated Depreciation

Appropriations

Bonds Payable

Budgetary Fund Balance

Buildings

Cash

Construction Expenditures

Construction Work in Progress

Encumbrances

Encumbrances Outstanding

Estimated Revenues

Expenditures

Expenses—General Government

Expenses—Public Safety

Fund Balance—Assigned

Fund Balance—Restricted

Fund Balance—Unassigned

Gain on Sale of Machinery

Interest Expenditures

Interest Payable

Interfund Transfers Out

Land

Loss on Sale of Machinery

Machinery and Equipment

Other Financing Sources—Interfund Transfers In

Other Financing Sources—Proceeds of Bonds

Other Financing Uses

Premium on Bonds Payable

Proceeds of Bonds

Program Revenues—Culture and Recreation—Capital Grants and Contributions

Program Revenues—Public Safety

Revenues

Vouchers Payable

In Fulbright County, the Parks and Recreation Department constructed a library in one of the county’s high growth areas. The construction was funded by a number of sources. Below is selected information related to the Library Capital Project Fund. All activity related to the library construction occurred within the 2017 fiscal year.

Explanation / Answer

Journal entry for capital projects fund and governmental activities at the government-wide level

                         Capital projects fund                                                            Government activities

1. Cash                           $7,900,000                                      1. Cash                       $7,900,000

      To Other financing sources          $7,900,000                                            To Bonds payable        $7,900,000

     (being proceeds of bonds)                                                                      (being proceeds of bonds)

3 Cash                                   $440,000

To Other Financing Sources-Interfund Transfers in      $440,000                   No journal entry needed

(being cash transfered for construction of library)

Construction expenditures                                                                Infrastucture assets $9,160,500

Land                                $295,000                                                            To Cash                    $9,160,500

Building                          $6,390,000

Equipment                      $2,475,500

       To Cash                          $9160500

(being completion of work and payment of amount)

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