Residents of the town of Sunny View, Arizona authorized a $5,000,000 renovation to their historic town hall on November 15, 2022. Financing for the project consists of $2,500,000 from a 5 percent serial bond issue, $1,500,000 from a state grant, and $1,000,000 from the General Fund. Debt service for the serial bonds will be provided by a one-quarter-cent city sales tax imposed on every dollar of sales in the city. Required: Complete the necessary journal entries to record the related transactions in the town's capital projects fund, debt service fund, and governmental activities at the government-wide level. You may ignore entries in the General Fund. The town has a calendar year-end. j. The town paid Central Paving and Construction the amount it had billed, except for 5 percent that was withheld as a retained percentage per terms of the contract. k. Grant funds totaling $1,500,000 are received from the state historical society because eligible expenditures have been made. l. At year-end, closing entries are made; $1,000,000 of the fund balance is assigned, and the remainder is restricted. Ignore closing entries for government activities. m. Record the 2024 budget for the Serial Debt Service Fund; $300,000 of earmarked sales taxes are expected to be collected in 2024; appropriations include a $250,000 principal payment on April 1 and two serial bond interest payments.
Residents of the town of Sunny View, Arizona authorized a $5,000,000 renovation to their
historic town hall on November 15, 2022. Financing for the project consists of $2,500,000 from
a 5 percent serial bond issue, $1,500,000 from a state grant, and $1,000,000 from the General
Fund. Debt service for the serial bonds will be provided by a one-quarter-cent city sales tax
imposed on every dollar of sales in the city.
Required:
Complete the necessary
projects fund, debt service fund, and governmental activities at the government-wide level. You
may ignore entries in the General Fund. The town has a calendar year-end.
j. The town paid Central Paving and Construction the amount it had billed, except for 5
percent that was withheld as a retained percentage per terms of the contract.
k. Grant funds totaling $1,500,000 are received from the state historical society because
eligible expenditures have been made.
l. At year-end, closing entries are made; $1,000,000 of the fund balance is assigned, and
the remainder is restricted. Ignore closing entries for government activities.
m. Record the 2024 budget for the Serial Debt Service Fund; $300,000 of earmarked sales
taxes are expected to be collected in 2024; appropriations include a $250,000 principal
payment on April 1 and two serial bond interest payments.
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