The citizens of Spencer County approved the issuance of $2,006,000 in 6 percent general obligation bonds to finance the construction of a courthouse annex. A capital projects fund was established for that purpose. The preclosing trial balance of the courthouse annex capital project fund follows: Trial Balance-December 31, 2024 Cash Contract payable Due from state government Encumbrances Expenditures-capital Intergovernmental grant Other Financing Sources: premium on bonds Other Financing Sources: proceeds sale of bonds Budgetary fund balance-Reserve for encumbrances Other Financing Uses: Transfer out Debits $907,000 190,000 107,000 1,853,000 56,000 $3,113,000 Credits $550,000 394,000 56,000 2,006,000 107,000 $3,113,000 Required: a. Prepare any closing entries necessary at year-end. b. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the courthouse annex capital project fund. c. Prepare a Balance Sheet for the courthouse annex capital project fund, assuming all unexpended resources are restricted to construction of the courthouse annex.
The citizens of Spencer County approved the issuance of $2,006,000 in 6 percent general obligation bonds to finance the construction of a courthouse annex. A capital projects fund was established for that purpose. The preclosing trial balance of the courthouse annex capital project fund follows: Trial Balance-December 31, 2024 Cash Contract payable Due from state government Encumbrances Expenditures-capital Intergovernmental grant Other Financing Sources: premium on bonds Other Financing Sources: proceeds sale of bonds Budgetary fund balance-Reserve for encumbrances Other Financing Uses: Transfer out Debits $907,000 190,000 107,000 1,853,000 56,000 $3,113,000 Credits $550,000 394,000 56,000 2,006,000 107,000 $3,113,000 Required: a. Prepare any closing entries necessary at year-end. b. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the courthouse annex capital project fund. c. Prepare a Balance Sheet for the courthouse annex capital project fund, assuming all unexpended resources are restricted to construction of the courthouse annex.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The citizens of Spencer County approved the issuance of $2,006,000 in 6 percent general obligation bonds to finance the
construction of a courthouse annex. A capital projects fund was established for that purpose. The preclosing trial balance of the
courthouse annex capital project fund follows:
Trial Balance-December 31, 2024
Cash
Contract payable
Due from state government
Encumbrances
Expenditures-capital
Intergovernmental grant
Other Financing Sources: premium on bonds
Other Financing Sources: proceeds sale of bonds
Budgetary fund balance-Reserve for encumbrances
Other Financing Uses: Transfer out
Debits
$907,000
190,000
107,000
1,853,000
56,000
$3,113,000
Credits
$550,000
394,000
56,000
2,006,000
107,000
$3,113,000
Required:
a. Prepare any closing entries necessary at year-end.
b. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the courthouse annex capital project fund.
c. Prepare a Balance Sheet for the courthouse annex capital project fund, assuming all unexpended resources are restricted to
construction of the courthouse annex.
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