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5. The library was completed four months ahead of schedule. Total construction expenditures for the library amounted to $7,248,500 and were settled with cash. When the project was completed, the cost of the library was allocated as follows: $215,000 to land, $6,310,000 to building, and the remainder to equipment. 5a Capital Projects Fund Record the completion of construction of the library. Encumbrances Outstanding Encumbrances 5b Record the payment upon completion of capital project. Construction Expenditures Cash 7,248,500 7,248,500 5c Governmental Activities Record the completion of construction of the library. Construction Work in Progress 7,248,500 Cash 7,248,500 5d Record the capitalization of each item. Land Buildings Machinery and Equipment Construction Work in Progress 215,000 6,310,000 723,500 7,248,500 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 was closed by transferring remaining funds to the debt service fund for use in library construction debt repayment. 6a Capital Projects Fund Close the temporary accounts to Fund Balance-Restricted. Other Financing Sources-Proceeds of Bonds Other Financing Sources-Interfund Transfers In Revenues Construction Expenditures Fund Balance-Restricted 6b Record the transfer to the debt service fund. Other Financing Uses-Interfund Transfers Out Cash 6c Close the remaining temporary account to Fund Balance-Restricted. Fund Balance-Restricted Other Financing Uses-Interfund Transfers Out 6d Governmental Activities No Journal Entry Required 7,248,500

5. The library was completed four months ahead of schedule. Total construction expenditures for the library amounted to $7,248,500 and were settled with cash. When the project was completed, the cost of the library was allocated as follows: $215,000 to land, $6,310,000 to building, and the remainder to equipment. 5a Capital Projects Fund Record the completion of construction of the library. Encumbrances Outstanding Encumbrances 5b Record the payment upon completion of capital project. Construction Expenditures Cash 7,248,500 7,248,500 5c Governmental Activities Record the completion of construction of the library. Construction Work in Progress 7,248,500 Cash 7,248,500 5d Record the capitalization of each item. Land Buildings Machinery and Equipment Construction Work in Progress 215,000 6,310,000 723,500 7,248,500 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 was closed by transferring remaining funds to the debt service fund for use in library construction debt repayment. 6a Capital Projects Fund Close the temporary accounts to Fund Balance-Restricted. Other Financing Sources-Proceeds of Bonds Other Financing Sources-Interfund Transfers In Revenues Construction Expenditures Fund Balance-Restricted 6b Record the transfer to the debt service fund. Other Financing Uses-Interfund Transfers Out Cash 6c Close the remaining temporary account to Fund Balance-Restricted. Fund Balance-Restricted Other Financing Uses-Interfund Transfers Out 6d Governmental Activities No Journal Entry Required 7,248,500

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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5. The library was completed four months ahead of schedule. Total construction expenditures for the library amounted to $7,248,500 and were settled with cash. When the project was completed, the cost of the library was allocated as follows: $215,000 to land, $6,310,000 to building, and the remainder to equipment. 5a Capital Projects Fund Record the completion of construction of the library. Encumbrances Outstanding Encumbrances 5b Record the payment upon completion of capital project. Construction Expenditures Cash 7,248,500 7,248,500 5c Governmental Activities Record the completion of construction of the library. Construction Work in Progress 7,248,500 Cash 7,248,500 5d Record the capitalization of each item. Land Buildings Machinery and Equipment Construction Work in Progress 215,000 6,310,000 723,500 7,248,500
Transcribed Image Text:5. The library was completed four months ahead of schedule. Total construction expenditures for the library amounted to $7,248,500 and were settled with cash. When the project was completed, the cost of the library was allocated as follows: $215,000 to land, $6,310,000 to building, and the remainder to equipment. 5a Capital Projects Fund Record the completion of construction of the library. Encumbrances Outstanding Encumbrances 5b Record the payment upon completion of capital project. Construction Expenditures Cash 7,248,500 7,248,500 5c Governmental Activities Record the completion of construction of the library. Construction Work in Progress 7,248,500 Cash 7,248,500 5d Record the capitalization of each item. Land Buildings Machinery and Equipment Construction Work in Progress 215,000 6,310,000 723,500 7,248,500
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 was closed by transferring remaining funds to the debt service fund for use in library construction debt repayment. 6a Capital Projects Fund Close the temporary accounts to Fund Balance-Restricted. Other Financing Sources-Proceeds of Bonds Other Financing Sources-Interfund Transfers In Revenues Construction Expenditures Fund Balance-Restricted 6b Record the transfer to the debt service fund. Other Financing Uses-Interfund Transfers Out Cash 6c Close the remaining temporary account to Fund Balance-Restricted. Fund Balance-Restricted Other Financing Uses-Interfund Transfers Out 6d Governmental Activities No Journal Entry Required 7,248,500
Transcribed Image Text: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 was closed by transferring remaining funds to the debt service fund for use in library construction debt repayment. 6a Capital Projects Fund Close the temporary accounts to Fund Balance-Restricted. Other Financing Sources-Proceeds of Bonds Other Financing Sources-Interfund Transfers In Revenues Construction Expenditures Fund Balance-Restricted 6b Record the transfer to the debt service fund. Other Financing Uses-Interfund Transfers Out Cash 6c Close the remaining temporary account to Fund Balance-Restricted. Fund Balance-Restricted Other Financing Uses-Interfund Transfers Out 6d Governmental Activities No Journal Entry Required 7,248,500
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