The state government established a capital project fund in 2019 to build new highways. The fund is siupported by a 5 percent tax on disel fuel sales in the state. The tax is collected by private gas stations and remitted in the following month to the state. The following transactions occured during 2020: Debits: cash $8,550,000; Taxes receivable $2,700,000; Credits : Contracts Payble $1,950,000; fund balance $9,300,000 1. 42,100,000 of encumbrances outstanding at December 31, 20189 were re-established. 2. During the year, fuel taxes were remitted to the state totaling $23,600,000, including the amount due at the end of the previous year. In addition, $2,870,000 is expected to be remitted in January of next year for fuel sales in December 2020. 3. the state awarded new contracts for road construction totaling $23,650,000. 4. During the year, contractors submitted invoices for payment totaling $23,970,000. These were all under the terms of contracts (i.e., same $ amounts) issued by the state. 5. The state made payments on outstanding accounts of $23,375,000. The state government operates debt service fund to service outstanding general obligation bonds. The following transactions occured during 2020: Debit: Cash $210,000; Credit: Fund balance $210,000 6. The state general fund provided cash of $4,850,000 through transfer to the debt service fund. 7. Payments for matured interest totaled $2,985,000 and payments for matured principal totaled $1,850,000 during the year. 8. In December, the State refunded bonds to obtain abetter interst rate. New bonds were issued providing proceeds of $25,000,000, which was immediately used to retire outstanding bonds in the same amount. required: a. Prepare journal entries recording the event 1 to 8 (above) for the capitol projects and debt service funds. b. post journal entries to t account c. prepare c;osing entries. d. Prepare a statement of Revenues, Expenditures, and changes in fund balance for the governemental funds ( the General Fund and special revenue fund financial statements have already been prepared). e. Prepare a Balance Sheet for the governemental Funds assumiong all unexpended spendable net resources in the capital projects fund are classified as restricted and in the debt service fund are classified as assigned.
The state government established a capital project fund in 2019 to build new highways. The fund is siupported by a 5 percent tax on disel fuel sales in the state. The tax is collected by private gas stations and remitted in the following month to the state. The following transactions occured during 2020:
Debits: cash $8,550,000; Taxes receivable $2,700,000;
Credits : Contracts Payble $1,950,000; fund balance $9,300,000
1. 42,100,000 of encumbrances outstanding at December 31, 20189 were re-established.
2. During the year, fuel taxes were remitted to the state totaling $23,600,000, including the amount due at the end of the previous year. In addition, $2,870,000 is expected to be remitted in January of next year for fuel sales in December 2020.
3. the state awarded new contracts for road construction totaling $23,650,000.
4. During the year, contractors submitted invoices for payment totaling $23,970,000. These were all under the terms of contracts (i.e., same $ amounts) issued by the state.
5. The state made payments on outstanding accounts of $23,375,000.
The state government operates debt service fund to service outstanding general obligation bonds. The following transactions occured during 2020:
Debit: Cash $210,000; Credit: Fund balance $210,000
6. The state general fund provided cash of $4,850,000 through transfer to the debt service fund.
7. Payments for matured interest totaled $2,985,000 and payments for matured principal totaled $1,850,000 during the year.
8. In December, the State refunded bonds to obtain abetter interst rate. New bonds were issued providing proceeds of $25,000,000, which was immediately used to retire outstanding bonds in the same amount.
required:
a. Prepare
b.
c. prepare c;osing entries.
d. Prepare a statement of Revenues, Expenditures, and changes in fund balance for the governemental funds ( the General Fund and special revenue fund financial statements have already been prepared).
e. Prepare a
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How to prepare the closing entries and statements?
question c and d and e of the problem.
by Bartleby ExpertPrepare a
by Bartleby ExpertPrepare a statement of Revenues, Expenditures, and changes in fund balance for the governemental funds ( the General Fund and special revenue fund financial statements have already been prepared).
by Bartleby Expert
