During FY 2017, the voters of Surprise County approved construction of a $22 mil
ID: 341756 • Letter: D
Question
During FY 2017, the voters of Surprise County approved construction of a $22 million police facility and an $12 million fire station to accommodate the county’s population growth. The construction will be financed by tax-supported bonds in the amount of $30 million, a $2 million economic stimulus grant, and a portion of future use tax revenues. During 2017, the following events and transactions occurred.
Prepare journal entries to record the the following transactions in a single Surprise County Construction Fund and governmental activities general journal at the government-wide level. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in whole dollar amounts and not in millions.)
During FY 2017, the voters of Surprise County approved construction of a $22 million police facility and an $12 million fire station to accommodate the county’s population growth. The construction will be financed by tax-supported bonds in the amount of $30 million, a $2 million economic stimulus grant, and a portion of future use tax revenues. During 2017, the following events and transactions occurred.
Explanation / Answer
Solution:
a) Preparing Journal Entries to Record the Following Transactions in a Single Surpirse County Construction Fund and governmental activities general journal at the government-wide level:
Date General Journal Debit Credit 1 Construction Fund Cash $130,000 Other Financing Sources -Proceeds of Bond Anticipation Notes $130,000 Governmental Activities Cash $130,000 Bond Anticipation Notes Payable $130,000 2 Construction Fund Construction Expenditures - Police $31,500 Construction Expenditures - Fire $31,500 Vouchers Payable $63,000 Governmental Activities Construction Expenditures - Police $31,500 Construction Expenditures - Fire $31,500 Vouchers Payable $63,000 3 Construction Fund Encumbrances - Police $22,000,000 Encumbrances - Fire $12,000,000 Encumbrances Outstanding - Police $22,000,000 Encumbrances Outstanding - Fire $12,000,000 Governmental Activities No Entry 4 Construction Fund Cash $30,000,000 Other Financing Sources - Proceeds of Bonds $30,000,000 Governmental Activities Cash $30,300,000 Bonds Payable $30,000,000 Premium on bonds payable $30,000 5 Construction Fund Other Financing Uses - Repayment of BAN's $130,000 Interest Expenditures ($130,000 * 0.06 *180/360) $3,900 Cash $133,900 Governmental Activities Bond Anticipation notes payable $130,000 Expenses - Interest on BAN's $3,900 Cash $133,000 6 a Construction Fund Encumbrances Outstanding - Police $10,000,000 Encumbrances Outstanding - Fire $7,000,000 Encumbrances - Police $10,000,000 Encumbrances - Fire $7,000,000 6 b Construction Expenditures - Police $10,000,000 Construction Expenditures - Fire $7,000,000 Contracts Payable $17,000,000 6 c Governmental Activities Construction Expenditures - Police $10,000,000 Construction Expenditures - Fire $7,000,000 Contracts Payable $17,000,000 7 Construction Fund Cash $1,000,000 Revenues $1,000,000 Governmental Activities Cash $1,000,000 Programs Revenues - Economic Development - Capital Grants and Contributions $1,000,000 8 Construction Fund Contracts Payable $17,000,000 Contracts Payable - Retained Percentage $850,000 Cash $16,150,000 Governmental Activities Contracts Payable $17,000,000 Contracts Payable - Retained Percentage $850,000 Cash $16,150,000 9 a Construction Fund Encumbrances Outstanding - Fire $5,000,000 Encumbrances - Fire $5,000,000 9 b Construction Expenditures - Fire $5,000,000 Contracts Payable $5,000,000 9 c Governmental Activities Construction Work in Progress - Fire $5,000,000 Contracts Payable $5,000,000 9 d Buildings $12,000,000 Construction Work in Progress $12,000,000 10 Construction Fund Contracts Payable $5,000,000 Contracts Payable - Retained Percentage $300,000 Cash $5,300,000 Governmental Activities Contracts Payable $5,000,000 Contracts Payable - Retained Percentage $300,000 Cash $5,300,000 11 a Construction Fund Encumbrances Outstanding - Police $7,000,000 Encumbrances - Police $7,000,000 11 b Construction Expenditures - Police $7,000,000 Contracts Payable $7,000,000 11 c Governmental Activities Construction Expenditures - Police $7,000,000 Contracts Payable $7,000,000 12 Construction Fund Other Financing Sources - Proceeds of Bond Anticipation notes $130,000 Other Financing Sources - Proceeds of Bond $30,000,000 Revenues $1,000,000 Construction Expenditures - Police $17,031,500 Construction Expenditures - Fire $12,031,500 Interest Expenditures $3,900 Other Financing Uses - Repayment of BAN's $130,000 Fund Balance - Restricted $1,933,100Related Questions
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