8. The initial construction invoice, less 5 percent retainage, was paid.8Construction Fund9. The fire station was completed, and a final invoice for the remaining $5 million was received. All fire station construction charges incurred can becapitalized as buildings.9aConstruction FundRecord the reversal of encumbrances.9b9c9dCash11bGovernmental Activities10. Following inspection, the fire station invoices were paid in full.Construction Fund1011c11. At year-end, the contractor billed the county an additional $7.5 million for the police facility; however, the police facility was incomplete.11a Construction FundRecord the reversal of encumbrances.Governmental ActivitiesLiabilitiesGovernmental Activities12. Temporary accounts were closed at year-end. Assume that the fund balances are all restricted.Construction Fund12SURPRISE COUNTYConstruction FundBalance SheetDecember 31, 2023Record the completion of the fire station construction contract.AssetsTotal AssetsLiabilities and Fund BalancesRecord the appropriation of funds towards completion the fire station.b. Prepare a Surprise County Construction Fund balance sheet for the year ended December 31, 2023. (Enter your answers in wholedollar amounts and not in millions.)Record the completion of the fire station construction contract.Vouchers PayableContracts PayableContracts Payable-Retained PercentageTotal LiabilitiesFund Balances:Fund Balance-RestrictedTotal Liabilities and Fund BalancesRecord the police facility construction work-in-progress.Record the police facility construction work-in-progress.$0 During FY 2023, the voters of Surprise County approved construction of a $21 million police facility and an $11 million fire station toaccommodate the county's population growth. The construction will be financed by tax-supported bonds in the amount of $30 million,a $1 million economic stimulus grant, and a portion of future use tax revenues. During 2023, the following events and transactionsoccurred.Requireda. Prepare journal entries to record the the following transactions in a single Surprise County Construction Fund, in a capital projectsfund, and in the governmental activities general journal at the government-wide level. (If no entry is required for atransaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in whole dollar amounts andnot in millions.)Fund/ GovernmentalTransactionGeneral JournalDebitCreditActivites1. Issued $100,000 of 3 percent bond anticipation notes to cover preliminary planning and engineering expenses. Assume this note will be repaid when thebond is issued and thus can be considered long-term.1Construction Fund2. Incurred and vouchered architecture and engineering costs in the amount of $60,000. They were split evenly between the two projects. (These itemswere not encumbered.)2Construction FundGovernmental Activities3. Entered into a construction contract for $32 million-$21 million was for the police facility and $11 million was related to the fire station.Construction Fund3Governmental Activities4. Issued the $30 million, 20-year 5 percent bonds at 101. (The premium would be recorded in a debt service fund. You do not need to record this entry.)Construction Fund6bGovernmental Activities6c5. Paid off the bond anticipation notes that had been outstanding 180 days. (Interest is an expenditure of the capital projects fund.)5Construction FundGovernmental Activities6. An invoice for $16 million was received from the contractor for a portion of police facility construction ($10 million) and fire station construction ($6million).баConstruction FundRecord the reversal of encumbrances.Governmental ActivitiesGovernmental ActivitiesRecord the construction Work-in-progress of the police facility and the fire station in the capital project fund.Governmental Activities.Record the construction Work-in-progress of the police facility and the fire station.7. Half of the grant funds were received in cash.Construction Fund7

Answered: Image /qna-images/answer/b76db484-0640-44fa-b34b-d96fa7ef4c5e.jpg

Answered: During FY 2023, the vote

Business

Accounting

During FY 2023, the vote

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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