Fulbright County constructed a library in one of the county's high-growth areas. The construction was funded by a number of sour Below is selected information related to the Library Capital Project Fund. All activity related to the library construction occurred wi the current fiscal year. The county operates on a calendar-year basis. Required Prepare a journal entry for capital projects fund and governmental activities at the government-wide level. (If no entry is required transaction/event, select "No Journal Entry Required" in the first account field.) Fund/ Governmental Activties General Journal 1. The county issued $6,700,000 of 6 percent bonds at par. Proceeds from the bonds were to be used for construction of the library. 1 Capital Projects Fund Transaction Governmental Activities 2. A $720,000 federal grant was received to help finance construction of the library. 2 Capital Projects Fund Governmental Activities 3. The Library Special Revenue Fund transferred $320,000 for use in construction of the library. Capital Projects Fund 3 Governmental Activities 4. A construction contract was awarded in the amount of $6,870,000. 4 Capital Projects Fund Governmental Activities Debit Cre 5. The library was completed four months ahead of schedule. Total construction expenditures for the library amounted to $7,726,500 and were settled with c When the project was completed, the cost of the library was allocated as follows: $235,000 to land, $6,330,000 to building, and the remainder to equipment.
Fulbright County constructed a library in one of the county's high-growth areas. The construction was funded by a number of sour Below is selected information related to the Library Capital Project Fund. All activity related to the library construction occurred wi the current fiscal year. The county operates on a calendar-year basis. Required Prepare a journal entry for capital projects fund and governmental activities at the government-wide level. (If no entry is required transaction/event, select "No Journal Entry Required" in the first account field.) Fund/ Governmental Activties General Journal 1. The county issued $6,700,000 of 6 percent bonds at par. Proceeds from the bonds were to be used for construction of the library. 1 Capital Projects Fund Transaction Governmental Activities 2. A $720,000 federal grant was received to help finance construction of the library. 2 Capital Projects Fund Governmental Activities 3. The Library Special Revenue Fund transferred $320,000 for use in construction of the library. Capital Projects Fund 3 Governmental Activities 4. A construction contract was awarded in the amount of $6,870,000. 4 Capital Projects Fund Governmental Activities Debit Cre 5. The library was completed four months ahead of schedule. Total construction expenditures for the library amounted to $7,726,500 and were settled with c When the project was completed, the cost of the library was allocated as follows: $235,000 to land, $6,330,000 to building, and the remainder to equipment.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Fulbright County constructed a library in one of the county's high-growth areas. The construction was funded by a number of sources.
Below is selected information related to the Library Capital Project Fund. All activity related to the library construction occurred within
the current fiscal year. The county operates on a calendar-year basis.
Required
Prepare a journal entry for capital projects fund and governmental activities at the government-wide level. (If no entry is required for a
transaction/event, select "No Journal Entry Required" in the first account field.)
Fund/ Governmental
Activities
General Journal
1. The county issued $6,700,000 of 6 percent bonds at par. Proceeds from the bonds were to be used for construction of the library.
1
Capital Projects Fund
Transaction.
2. A $720,000 federal grant was received to help finance construction of the library.
2
Capital Projects Fund
3. The Library Special Revenue Fund transferred $320,000 for use in construction of the library.
Capital Projects Fund
3
4
4. A construction contract was awarded in the amount of $6,870,000.
Capital Projects Fund
5b
5c
5d
Governmental Activities
ба
Governmental Activities
5. The library was completed four months ahead of schedule. Total construction expenditures for the library amounted to $7,726,500 and were settled with cash.
When the project was completed, the cost of the library was allocated as follows: $235,000 to land, $6,330,000 to building, and the remainder to equipment.
5a Capital Projects Fund
Record the completion of construction of the library.
6b
6c
Governmental Activities
6d
Governmental Activities
Governmental Activities
Record the payment upon completion of capital project.
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.
Capital Projects Fund
Close the temporary accounts to Fund Balance-Restricted.
Governmental Activities
Record the completion of construction of the library
Record the capitalization of each item.
Debit
Record the transfer to the debt service fund.
Credit
Close the remaining temporary account to Fund Balance-Restricted.
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