Question 1
The following transactions as well as events occurred in Lanesburg Township in 20x7
1- The township meeting agreed that a new police and fire department building would be constructed at a cost not to exceed $1,500,000 on land owned by the township
2- Cash with which to money the project was received from the following sources
Transfer from General Fund: $100,000
State-Federal Grant: 500,000
Bank of Lanesburg (long-term note): 900,000
Total: $1,500,000
The state federal grant is for 1/3 of the project cost not to exceed $500,000 as well as any unearned balance must be returned to the state
3- Cash was paid for building projects from the Capital Projects Fund as follows
Construction Contract: $1,400,000
Architect Fees: 50,000
Engineering Charges: 20,000
Total: 1,470,000
The unjustified portion of the grant was refunded to the state the remaining cash was transferred to the General Fund, and the Capital Projects Fund was terminated