Ask Accounting Basics Expert

jefferson County established a capital project fund in 2011 to build low-income housing with the transfer of $100,000 from the General Fund. The following transactions occurred during 2012:


Capital Project Fund Trial Balance:
December 31, 2011
Debits Credits
Cash $100,000
Fund Balance $100,000

1. April 1, 2012, 6 percent bonds with a face value of $700,000 were issued in the amount of $720,000. The bond premium was transferred to the debt service fund.

2. The County received notice that it had met eligibility requirements for a federal government grant intended to support the capital project in the amount of $250,000. The grant (cash) will be received when the project is completed in February 2013.


3. The County issued a contract for the construction in the amount of $1,000,000.
4. The contractor periodically bills the County for construction completed to date. During the year, bills totaling $390,000 were received. By year-end, a total of $350,000 had been paid.


Jefferson County established a debt service fund in 2012 to make interest and principle payments on the bonds issued in item 1 above. Bond payments are made on October 1 and April 1 of each year. Interest is based on an annual rate of 6 percent and principle payments are $17,500 each.


The following transactions occurred during 2012:
5. The bond premium was received through transfer from the capital project fund.
6. September 30, $38,500 was transferred from the General Fund for the October 1 bond payment.
7. The first debt service payment was made on October 1, 2012.

The Elwood Family Book Fund was established in December 2011, funded by a bequest with the legal restriction that only earnings, and not principal, can be used for the purchase of books for the James K. Polk Library in Jefferson County. The principal amount that must be maintained is $500,000. The following transactions occurred during 2012:

 

Permanent Fund Trial Balance:
December 31, 2011
Debits Credits
Receivable from Grantor $500,000
Nonspendable Fund Balance
Library Purchases $500,000

8. The Elwood family pledge of $500,000 was received in donated corporate bonds with a fair value of $370,000 and the balance in cash.

9. $130,000 was invested in U.S. Government Securities
10. Interest in the amount of $17,000 was received in cash during the year.
11. During the year, books totaling $14,000 were ordered for the library.
12. During the year, the library reported receiving books with an invoice amount totaling $14,000. $13,900 of the amounts due for book purchases had been paid by year-end.

13. An additional $2,500 of interest had accrued on the investments at December 31 and will be received in January of next year.

14. The corporate bonds had a market value of $371,500 and the U.S. securities had a market value of $129,400 as of December 31.


Required
Use the Excel template provided (www.mhhe.com/copley10e) to complete the following requirements. A separate tab is provided in Excel for each of these steps.

a. Prepare journal entries recording the events 1 to 14 for the capital project, debt service, and permanent funds.

b. Post the journal entries to T-accounts.
c. Prepare closing entries.
d. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the Governmental Funds (The General Fund financial statements have already been prepared).

e. Prepare a Balance Sheet for the Governmental Funds, assuming that unexpended spendable resources in the capital projects fund are classified as restricted and unexpended spendable resources in the debt service and permanent fund are classified as assigned.

 

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M950194

Have any Question?


Related Questions in Accounting Basics

Question what discoveries have you made in your research

Question: What discoveries have you made in your research and how does this information inform your ability to evaluate effective coaching and its impact on organizations? Consider these guiding questions: 1. What core c ...

Question requirement 1 read the article in below attachment

Question: Requirement: 1. Read the article in below attachment, and answer the questions in a paper format. Read below requirements before your writing! 2. Not to list the answers, and you should write as a paper format. ...

Question as a financial consultant you have contracted with

Question: As a financial consultant, you have contracted with Wheel Industries to evaluate their procedures involving the evaluation of long term investment opportunities. You have agreed to provide a detailed report ill ...

Question the following information is taken from the

Question: The following information is taken from the accrual accounting records of Kroger Sales Company: 1. During January, Kroger paid $9,150 for supplies to be used in sales to customers during the next 2 months (Febr ...

Assignment 1 lasa 2-capital budgeting techniquesas a

Assignment 1: LASA # 2-Capital Budgeting Techniques As a financial consultant, you have contracted with Wheel Industries to evaluate their procedures involving the evaluation of long term investment opportunities. You ha ...

Assignment 2 discussion questionthe finance department of a

Assignment 2: Discussion Question The finance department of a large corporation has evaluated a possible capital project using the NPV method, the Payback Method, and the IRR method. The analysts are puzzled, since the N ...

Question in this case you have been provided financial

Question: In this case, you have been provided financial information about the company in order to create a cash budget. Management is seeking advice or clarification on three main assumptions the company has been operat ...

Question 1what step in the accounting cycle do adjusting

Question: 1. What step in the accounting cycle do Adjusting Entries show up 2. How do these relate to the Accounting Worksheet? 3. Why are they completed at the end of each accounting period? The response must be typed, ...

Question is it important for non-accountants to understand

Question: Is it important for non-accountants to understand how to read financial statements? If you are not part of the accounting/finance function in a business what difference would it make? The response must be typed ...

Question refer to the hat rack cash flow statement 2002 in

Question: Refer to the Hat Rack Cash Flow Statement, 2002 in the text on page 17. Answer the following questions and submit to me via Canvas by the due date. 1. Cash flow from operations? 2. Cash flow from investing? 3. ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As