This year Riverside began work on an outdoor amphitheater and concession stand at the city's park. It is to be financed by a $3,500,000 bond issue and supplemented by a $500,000 General Fund transfer. The following transactions occurred during the current year: 1.The General Fund transferred $500,000 to the Park Building Capital Projects Fund (hint: credit "Other Financing Sources-Interfund Transfers In" for $500,000). 2.A contract was signed with Restin Construction Company for the major part of the project on a bid of $2,700,000. 3.Preliminary planning and engineering costs of $69,000 were vouchered for the Great Pacific Engineering Company. (This cost had not been encumbered, therefore, we do not need the reverse journal entries for encumbrances, but we need to record expenditures and liability for this cost in the capital projects fund.) 4.An invoice in the amount of $1,000,000 was received from Restin for progress to date on the project. 5.The $3,500,000 bonds were issued at par. Prepare journal entries to record the preceding information in the general ledger accounts for the Park Building Capital Projects Fund.(If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
This year Riverside began work on an outdoor amphitheater and concession stand at the city's park. It is to be financed by a $3,500,000 bond issue and supplemented by a $500,000 General Fund transfer. The following transactions occurred during the current year: 1.The General Fund transferred $500,000 to the Park Building Capital Projects Fund (hint: credit "Other Financing Sources-Interfund Transfers In" for $500,000). 2.A contract was signed with Restin Construction Company for the major part of the project on a bid of $2,700,000. 3.Preliminary planning and engineering costs of $69,000 were vouchered for the Great Pacific Engineering Company. (This cost had not been encumbered, therefore, we do not need the reverse journal entries for encumbrances, but we need to record expenditures and liability for this cost in the capital projects fund.) 4.An invoice in the amount of $1,000,000 was received from Restin for progress to date on the project. 5.The $3,500,000 bonds were issued at par. Prepare journal entries to record the preceding information in the general ledger accounts for the Park Building Capital Projects Fund.(If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:This year Riverside began work on an outdoor amphitheater and concession stand at the city's park. It is to be financed by a $3,500,000 bond issue and supplemented by a $500,000 General Fund transfer. The following
transactions occurred during the current year:
1.The General Fund transferred $500,000 to the Park Building Capital Projects Fund (hint: credit "Other Financing Sources-Interfund Transfers In" for $500,000).
2.A contract was signed with Restin Construction Company for the major part of the project on a bid of $2,700,000.
3.Preliminary planning and engineering costs of $69,000 were vouchered for e Great Pacific Engineering Company. (This cost had not been encumbered, therefore, we do not need the reverse journal entries for
encumbrances, but we need to record expenditures and liability for this cost in the capital projects fund.)
4.An invoice in the amount of $1,000,000 was received from Restin for progress to date on the project.
5.The $3,500,000 bonds were issued at par.
Prepare journal entries to record the preceding information in the general ledger accounts for the Park Building Capital Projects Fund.(If no entry is required for a transaction/event, select "No Journal Entry Required" in the
first account field.)
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