Armstrong County established a COuty Office Building Construction Fund to account for a project that was exoected to take less then one year to complete. The County's fiscal year ends in June 30. !. On July 1, 2019, Bonds were sold at par in the amount $8,000,000 for the project. 2. On July 5, a contract was signed woith Sellers Construction Company in the amount of $7,890,000 3. On December 30, a progress bill was received from Sellers in the amount $5,000,000. The bill was paid, except for 5 percent retained upon final inspection. 4. On June1 a final bill was received in the amount of $2,890,000 from Sellers, which was paid, except for the 5 percent retained. An appointment was made between the county engineer and Bill Sellers to inspect the building and to develop a list of items that needed to be corrected. 5. On the day of the meeting , the county engineer discovered that Sellers has filed for bankruptcy and moved out of the state. The city incurred a liability in the amount of $497,000 to have the defects corrected by the Baker Construction Company. )Charg any excess over the Balance of Contracts Payable - Retained Percentage to Capital Expenditures.) 6. All accoutns (from 5 above) were paid; remaining cash transferred to the debt service fund. 7. The accounts of the County Office Building Construction Fund were closed. Required a. Record the transactions in the County Office Building Costruction Fund for the fiscal year ended June 30,2020 b. Prepare a seperate Statement of Revenues, Expenditures, and Changes in Fund Balance for the County Office Building Construction Fund.
Armstrong County established a COuty Office Building Construction Fund to account for a project that was exoected to take less then one year to complete. The County's fiscal year ends in June 30.
!. On July 1, 2019, Bonds were sold at par in the amount $8,000,000 for the project.
2. On July 5, a contract was signed woith Sellers Construction Company in the amount of $7,890,000
3. On December 30, a progress bill was received from Sellers in the amount $5,000,000. The bill was paid, except for 5 percent retained upon final inspection.
4. On June1 a final bill was received in the amount of $2,890,000 from Sellers, which was paid, except for the 5 percent retained. An appointment was made between the county engineer and Bill Sellers to inspect the building and to develop a list of items that needed to be corrected.
5. On the day of the meeting , the county engineer discovered that Sellers has filed for bankruptcy and moved out of the state. The city incurred a liability in the amount of $497,000 to have the defects corrected by the Baker Construction Company. )Charg any excess over the Balance of Contracts Payable - Retained Percentage to Capital Expenditures.)
6. All accoutns (from 5 above) were paid; remaining cash transferred to the debt service fund.
7. The accounts of the County Office Building Construction Fund were closed.
Required
a. Record the transactions in the County Office Building Costruction Fund for the fiscal year ended June 30,2020
b. Prepare a seperate Statement of Revenues, Expenditures, and Changes in Fund Balance for the County Office Building Construction Fund.
These statements are prepared to determine the net funds.
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