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. n. The sales tax collections for debt service amounted to $250,000. o. Central Paving and Construction gave a final billing to the town for $2,000,000. Upon last inspection by the Public Works Department, a leak was discovered in the roof.p. Public works employees installed a new sidewalk and landscaping at a total cost of $130,000. q. The roof leak was repaired satisfactorily, and the city paid the last billing and all retainages. r. The April 1 debt service payments are made. s. The renovation is considered done, and appropriate amounts are reclassified as buildings and improvements other than buildings (landscaping). All capital projects fund nominal accounts are closed, and remaining cash in the capital projects fund is transferred to the debt service fund. Amend the debt service fund budget because this transfer was not anticipated.
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.
n. The sales tax collections for debt service amounted to $250,000.
o. Central Paving and Construction gave a final billing to the town for $2,000,000. Upon last inspection by the Public Works Department, a leak was discovered in the roof.p. Public works employees installed a new sidewalk and landscaping at a total cost of $130,000.
q. The roof leak was repaired satisfactorily, and the city paid the last billing and all
retainages.
r. The April 1 debt service payments are made.
s. The renovation is considered done, and appropriate amounts are reclassified as
buildings and improvements other than buildings (landscaping). All capital projects fund
nominal accounts are closed, and remaining cash in the capital projects fund is
transferred to the debt service fund. Amend the debt service fund budget
because this transfer was not anticipated.
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