Cash of $90,000 is transferred from a city’s General Fund to start construction

Question

Cash of $90,000 is transferred from a city’s General Fund to start construction on a police station. The city issues a bond at its $1.8 million face value. The police station is built for $1.89 million.

Assume that the city does not record the commitment. Prepare all necessary journal entries for these transactions for both fund and government-wide financial statements

1.Record sale of bonds - Governmental Activities.

2.Record completion of construction - Governmental Activities.

3.Record authorization of transfer for construction - General Fund.

4.Record transfer in of cash - Capital Projects Fund.

5.Record sale of bonds - Capital Projects Fund.

6.Record completion of construction - Capital Projects Fund.

Cash of $90,000 is transferred from a city’s General Fund to start construction on a police station. The city issues a bond at its $1.8 million face value. The police station is built for $1.89 million.

Explanation / Answer

SOLUTION:

JOURNAL ENTRIES:

Particulars Debit Credit 1 Cash 1,800,000 Bonds payable 1,800,000 2 Building 1,890,000 Cash 1,890,000 3 Other Financing Uses - Transfers Out 90,000 Cash 90,000 4 Cash 90,000 Other Financing Sources - Transfers In 90,000 5 Cash 1,800,000 Other Financing Sources - Bond Proceeds 1,800,000 6 Expenditures 1,890,000 Cash 1,890,000

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.