Capital project fund includes financial resources acquired for capital projects such as the construction of capital facilities, acquisition for the benefit of citizens, for example, construction of parks. This fund is created only at the time of construction or acquisition of the facility and closed once it is achieved. The entries for all the funds involved and also the closing entries for capital project fund.

Question

Want to see more full solutions like this?

Answer 1

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 18, Problem 18.15P

a

To determine

Introduction: Capital project fund includes financial resources acquired for capital projects such as the construction of capital facilities, acquisition for the benefit of citizens, for example, construction of parks. This fund is created only at the time of construction or acquisition of the facility and closed once it is achieved.

The entries for all the funds involved and also the closing entries for capital project fund.

a

Expert Solution

Explanation of Solution

Particulars	Debit $	Credit $
CPE cash	5,080,000
Other financial sources − bond issue		5,000,000
Other financial sources − bond premium		80,000
(Issued bonds at premium for capital project fund)

Other financing uses − transfer in capital project fund	80,000
Cash		80,000
(Premium transferred to other financing uses for debit service fund)

Debit service fund Cash	80,000
Other financing sources − transfer in from capital project fund		80,000
(Premium in capital project transferred from debit service)

Capital project fund expense	45,000
Voucher payable		45,000
(Expense on account of capital project recognized)

Vouchers payable	45,000
Cash		45,000
(Paid cash for recognized vouchers)

Capital project fund encumbrances	4,500,000
Budgetary fund balance − reserved for Encumbrances		4,500,000
(Encumbrances for capital project created)

Capital project fund budgetary fund balance − reserved for Encumbrances	2,000,000
Encumbrances		2,000,000
(Encumbrances reversed at the time of designated expenditure)

Expenditure	2,000,000
Contracts payable		1,800,000
Contract payable − Retained percentage		200,000
(Designated expenditure recognized)

Capital project fund contracts payable	1,800,000
Cash		1,800,000
(Cash paid on contracts payable)

Closing entries on capital project fund:

Other financing sources − bond issue	5,000,000
Other financing sources − bond premium	80,000
Expenditures		2,045,000
Other financing uses − transfer out to debt service fund		80,000
Fund balance − unreserved		2,955,000
(Closing entry passed and transferring balance to fund balance unreserved)

Budgetary fund balance − reserved for encumbrances	2,500,000
Encumbrances		2,500,000
(Outstanding encumbrances at the end transferred to reserve fund account)

Fund balance − unreserved	2,500,000
Fund balance − reserved for encumbrances		2,500,000
(Outstanding encumbrances balance transferred to fund balance unreserved at the end of the year)

b

To determine

Introduction: Capital project fund includes financial resources acquired for capital projects such as the construction of capital facilities, acquisition for the benefit of citizens, for example, construction of parks. This fund is created only at the time of construction or acquisition of the facility and closed once it is achieved.

The balance sheet of capital project fund at June 30 20X3

b

Expert Solution

Answer to Problem 18.15P

Net assets as per capital project fund balance sheet $3,155,000.

Explanation of Solution

W City

Capital Project Fund Balance Sheet

December 31, 20X2

	$	$
Assets:
Cash		3,155,000
Total assets		3,155,000

Liabilities and fund balance:
Contracts payable − retained percentage		200,000
Fund balance:
Reserved for encumbrances	2,500,000
Unreserved	455,000	2,955,000
Total liabilities and fund balance		3,155,000

c

To determine

Introduction: Capital project fund includes financial resources acquired for capital projects such as the construction of capital facilities, acquisition for the benefit of citizens, for example, construction of parks. This fund is created only at the time of construction or acquisition of the facility and closed once it is achieved.

The preparation of Statement of revenues, expenses and changes in fund net position for 20X3

c

Expert Solution

Answer to Problem 18.15P

Fund balance as on June 30 20X3 $2,955,000.

Explanation of Solution

W City

Statement of Revenue, Expenses and

Change in Fund Net Assets

December 31, 20X2

	$	$
Expenditure:
Capital Outlays:
Building removal		45,000
Building constriction		2,000,000
Total expenditures		2,045,000
Deficiency of revenue over expenditures		(2,045,000)

Proceeds of serial bonds		5,080,000
Transfer out to debt service fund		(80,000)
Total other financing sources (uses)		5,000,000
Net change in fund balance		2,955,000
Fund balance July 1 20X2		0
Fund balance June 30 20X3		2,955,000

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

City ‘A’ issued OMR 2,750,000, 1.5 percent serial bonds, paying interest on January 1 and July 1. The bonds were sold on June 1 for 102. The city is required to use all accrued interest and premiums to service the debt. Any additional resources needed to service the debt are to come from the General Fund. The city’s year-end is December 31. Required: Prepare in general journal form the budgetary entry the debt service fund would make to account for this serial bond issue.

A bond issue was authorized by vote to provide funds for the construction of a new municipal building, which it was estimated would cost $1,070,000. The bods are to be paid in 10 equal installments from a debt service fund, and payments are due March 1 of each year.

A County had the following transactions. The county's fiscal year end is December 31. Analyze the effects of each transaction on the accounting equations of each fund or nonfund accounts affected by the transaction. 1. County issued $10 million of general obligation, 10%, 10-year bonds at 105 on October 1, 20X8. Bond interest is payable semiannually on March 31 and September 30. The bonds were issued to finance construction of a new county office building. 2. The county board of supervisors voted to use the premium on the bonds to pay principal and interest charges on the debt when it matures. Resources were transferred to the appropriate fund. 3. The county paid $2 million to Roger Construction Company during 20X8 for work completed during the year. 4. Reflect any interest accrual required or permitted at year end. 5. The county purchased a police vehicle for $22,000 and paid cash. 6. The county owned and operated electric utility billed residents and businesses $2,000,000 for…

Answer 2

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 18, Problem 18.15P

a

To determine

Introduction: Capital project fund includes financial resources acquired for capital projects such as the construction of capital facilities, acquisition for the benefit of citizens, for example, construction of parks. This fund is created only at the time of construction or acquisition of the facility and closed once it is achieved.

The entries for all the funds involved and also the closing entries for capital project fund.

a

Expert Solution

Explanation of Solution

Particulars	Debit $	Credit $
CPE cash	5,080,000
Other financial sources − bond issue		5,000,000
Other financial sources − bond premium		80,000
(Issued bonds at premium for capital project fund)

Other financing uses − transfer in capital project fund	80,000
Cash		80,000
(Premium transferred to other financing uses for debit service fund)

Debit service fund Cash	80,000
Other financing sources − transfer in from capital project fund		80,000
(Premium in capital project transferred from debit service)

Capital project fund expense	45,000
Voucher payable		45,000
(Expense on account of capital project recognized)

Vouchers payable	45,000
Cash		45,000
(Paid cash for recognized vouchers)

Capital project fund encumbrances	4,500,000
Budgetary fund balance − reserved for Encumbrances		4,500,000
(Encumbrances for capital project created)

Capital project fund budgetary fund balance − reserved for Encumbrances	2,000,000
Encumbrances		2,000,000
(Encumbrances reversed at the time of designated expenditure)

Expenditure	2,000,000
Contracts payable		1,800,000
Contract payable − Retained percentage		200,000
(Designated expenditure recognized)

Capital project fund contracts payable	1,800,000
Cash		1,800,000
(Cash paid on contracts payable)

Closing entries on capital project fund:

Other financing sources − bond issue	5,000,000
Other financing sources − bond premium	80,000
Expenditures		2,045,000
Other financing uses − transfer out to debt service fund		80,000
Fund balance − unreserved		2,955,000
(Closing entry passed and transferring balance to fund balance unreserved)

Budgetary fund balance − reserved for encumbrances	2,500,000
Encumbrances		2,500,000
(Outstanding encumbrances at the end transferred to reserve fund account)

Fund balance − unreserved	2,500,000
Fund balance − reserved for encumbrances		2,500,000
(Outstanding encumbrances balance transferred to fund balance unreserved at the end of the year)

b

To determine

Introduction: Capital project fund includes financial resources acquired for capital projects such as the construction of capital facilities, acquisition for the benefit of citizens, for example, construction of parks. This fund is created only at the time of construction or acquisition of the facility and closed once it is achieved.

The balance sheet of capital project fund at June 30 20X3

b

Expert Solution

Answer to Problem 18.15P

Net assets as per capital project fund balance sheet $3,155,000.

Explanation of Solution

W City

Capital Project Fund Balance Sheet

December 31, 20X2

	$	$
Assets:
Cash		3,155,000
Total assets		3,155,000

Liabilities and fund balance:
Contracts payable − retained percentage		200,000
Fund balance:
Reserved for encumbrances	2,500,000
Unreserved	455,000	2,955,000
Total liabilities and fund balance		3,155,000

c

To determine

Introduction: Capital project fund includes financial resources acquired for capital projects such as the construction of capital facilities, acquisition for the benefit of citizens, for example, construction of parks. This fund is created only at the time of construction or acquisition of the facility and closed once it is achieved.

The preparation of Statement of revenues, expenses and changes in fund net position for 20X3

c

Expert Solution

Answer to Problem 18.15P

Fund balance as on June 30 20X3 $2,955,000.

Explanation of Solution

W City

Statement of Revenue, Expenses and

Change in Fund Net Assets

December 31, 20X2

	$	$
Expenditure:
Capital Outlays:
Building removal		45,000
Building constriction		2,000,000
Total expenditures		2,045,000
Deficiency of revenue over expenditures		(2,045,000)

Proceeds of serial bonds		5,080,000
Transfer out to debt service fund		(80,000)
Total other financing sources (uses)		5,000,000
Net change in fund balance		2,955,000
Fund balance July 1 20X2		0
Fund balance June 30 20X3		2,955,000

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 18, Problem 18.15P

a

To determine

Introduction: Capital project fund includes financial resources acquired for capital projects such as the construction of capital facilities, acquisition for the benefit of citizens, for example, construction of parks. This fund is created only at the time of construction or acquisition of the facility and closed once it is achieved.

The entries for all the funds involved and also the closing entries for capital project fund.

a

Expert Solution

Explanation of Solution

Particulars	Debit $	Credit $
CPE cash	5,080,000
Other financial sources − bond issue		5,000,000
Other financial sources − bond premium		80,000
(Issued bonds at premium for capital project fund)

Other financing uses − transfer in capital project fund	80,000
Cash		80,000
(Premium transferred to other financing uses for debit service fund)

Debit service fund Cash	80,000
Other financing sources − transfer in from capital project fund		80,000
(Premium in capital project transferred from debit service)

Capital project fund expense	45,000
Voucher payable		45,000
(Expense on account of capital project recognized)

Vouchers payable	45,000
Cash		45,000
(Paid cash for recognized vouchers)

Capital project fund encumbrances	4,500,000
Budgetary fund balance − reserved for Encumbrances		4,500,000
(Encumbrances for capital project created)

Capital project fund budgetary fund balance − reserved for Encumbrances	2,000,000
Encumbrances		2,000,000
(Encumbrances reversed at the time of designated expenditure)

Expenditure	2,000,000
Contracts payable		1,800,000
Contract payable − Retained percentage		200,000
(Designated expenditure recognized)

Capital project fund contracts payable	1,800,000
Cash		1,800,000
(Cash paid on contracts payable)

Closing entries on capital project fund:

Other financing sources − bond issue	5,000,000
Other financing sources − bond premium	80,000
Expenditures		2,045,000
Other financing uses − transfer out to debt service fund		80,000
Fund balance − unreserved		2,955,000
(Closing entry passed and transferring balance to fund balance unreserved)

Budgetary fund balance − reserved for encumbrances	2,500,000
Encumbrances		2,500,000
(Outstanding encumbrances at the end transferred to reserve fund account)

Fund balance − unreserved	2,500,000
Fund balance − reserved for encumbrances		2,500,000
(Outstanding encumbrances balance transferred to fund balance unreserved at the end of the year)

b

To determine

Introduction: Capital project fund includes financial resources acquired for capital projects such as the construction of capital facilities, acquisition for the benefit of citizens, for example, construction of parks. This fund is created only at the time of construction or acquisition of the facility and closed once it is achieved.

The balance sheet of capital project fund at June 30 20X3

b

Expert Solution

Answer to Problem 18.15P

Net assets as per capital project fund balance sheet $3,155,000.

Explanation of Solution

W City

Capital Project Fund Balance Sheet

December 31, 20X2

	$	$
Assets:
Cash		3,155,000
Total assets		3,155,000

Liabilities and fund balance:
Contracts payable − retained percentage		200,000
Fund balance:
Reserved for encumbrances	2,500,000
Unreserved	455,000	2,955,000
Total liabilities and fund balance		3,155,000

c

To determine

Introduction: Capital project fund includes financial resources acquired for capital projects such as the construction of capital facilities, acquisition for the benefit of citizens, for example, construction of parks. This fund is created only at the time of construction or acquisition of the facility and closed once it is achieved.

The preparation of Statement of revenues, expenses and changes in fund net position for 20X3

c

Expert Solution

Answer to Problem 18.15P

Fund balance as on June 30 20X3 $2,955,000.

Explanation of Solution

W City

Statement of Revenue, Expenses and

Change in Fund Net Assets

December 31, 20X2

	$	$
Expenditure:
Capital Outlays:
Building removal		45,000
Building constriction		2,000,000
Total expenditures		2,045,000
Deficiency of revenue over expenditures		(2,045,000)

Proceeds of serial bonds		5,080,000
Transfer out to debt service fund		(80,000)
Total other financing sources (uses)		5,000,000
Net change in fund balance		2,955,000
Fund balance July 1 20X2		0
Fund balance June 30 20X3		2,955,000

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 18, Problem 18.15P

a

To determine

Introduction: Capital project fund includes financial resources acquired for capital projects such as the construction of capital facilities, acquisition for the benefit of citizens, for example, construction of parks. This fund is created only at the time of construction or acquisition of the facility and closed once it is achieved.

The entries for all the funds involved and also the closing entries for capital project fund.

a

Expert Solution

Explanation of Solution

Particulars	Debit $	Credit $
CPE cash	5,080,000
Other financial sources − bond issue		5,000,000
Other financial sources − bond premium		80,000
(Issued bonds at premium for capital project fund)

Other financing uses − transfer in capital project fund	80,000
Cash		80,000
(Premium transferred to other financing uses for debit service fund)

Debit service fund Cash	80,000
Other financing sources − transfer in from capital project fund		80,000
(Premium in capital project transferred from debit service)

Capital project fund expense	45,000
Voucher payable		45,000
(Expense on account of capital project recognized)

Vouchers payable	45,000
Cash		45,000
(Paid cash for recognized vouchers)

Capital project fund encumbrances	4,500,000
Budgetary fund balance − reserved for Encumbrances		4,500,000
(Encumbrances for capital project created)

Capital project fund budgetary fund balance − reserved for Encumbrances	2,000,000
Encumbrances		2,000,000
(Encumbrances reversed at the time of designated expenditure)

Expenditure	2,000,000
Contracts payable		1,800,000
Contract payable − Retained percentage		200,000
(Designated expenditure recognized)

Capital project fund contracts payable	1,800,000
Cash		1,800,000
(Cash paid on contracts payable)

Closing entries on capital project fund:

Other financing sources − bond issue	5,000,000
Other financing sources − bond premium	80,000
Expenditures		2,045,000
Other financing uses − transfer out to debt service fund		80,000
Fund balance − unreserved		2,955,000
(Closing entry passed and transferring balance to fund balance unreserved)

Budgetary fund balance − reserved for encumbrances	2,500,000
Encumbrances		2,500,000
(Outstanding encumbrances at the end transferred to reserve fund account)

Fund balance − unreserved	2,500,000
Fund balance − reserved for encumbrances		2,500,000
(Outstanding encumbrances balance transferred to fund balance unreserved at the end of the year)

b

To determine

Introduction: Capital project fund includes financial resources acquired for capital projects such as the construction of capital facilities, acquisition for the benefit of citizens, for example, construction of parks. This fund is created only at the time of construction or acquisition of the facility and closed once it is achieved.

The balance sheet of capital project fund at June 30 20X3

b

Expert Solution

Answer to Problem 18.15P

Net assets as per capital project fund balance sheet $3,155,000.

Explanation of Solution

W City

Capital Project Fund Balance Sheet

December 31, 20X2

	$	$
Assets:
Cash		3,155,000
Total assets		3,155,000

Liabilities and fund balance:
Contracts payable − retained percentage		200,000
Fund balance:
Reserved for encumbrances	2,500,000
Unreserved	455,000	2,955,000
Total liabilities and fund balance		3,155,000

c

To determine

Introduction: Capital project fund includes financial resources acquired for capital projects such as the construction of capital facilities, acquisition for the benefit of citizens, for example, construction of parks. This fund is created only at the time of construction or acquisition of the facility and closed once it is achieved.

The preparation of Statement of revenues, expenses and changes in fund net position for 20X3

c

Expert Solution

Answer to Problem 18.15P

Fund balance as on June 30 20X3 $2,955,000.

Explanation of Solution

W City

Statement of Revenue, Expenses and

Change in Fund Net Assets

December 31, 20X2

	$	$
Expenditure:
Capital Outlays:
Building removal		45,000
Building constriction		2,000,000
Total expenditures		2,045,000
Deficiency of revenue over expenditures		(2,045,000)

Proceeds of serial bonds		5,080,000
Transfer out to debt service fund		(80,000)
Total other financing sources (uses)		5,000,000
Net change in fund balance		2,955,000
Fund balance July 1 20X2		0
Fund balance June 30 20X3		2,955,000

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 18, Problem 18.15P

a

To determine

Introduction: Capital project fund includes financial resources acquired for capital projects such as the construction of capital facilities, acquisition for the benefit of citizens, for example, construction of parks. This fund is created only at the time of construction or acquisition of the facility and closed once it is achieved.

The entries for all the funds involved and also the closing entries for capital project fund.

a

Expert Solution

Explanation of Solution

Particulars	Debit $	Credit $
CPE cash	5,080,000
Other financial sources − bond issue		5,000,000
Other financial sources − bond premium		80,000
(Issued bonds at premium for capital project fund)

Other financing uses − transfer in capital project fund	80,000
Cash		80,000
(Premium transferred to other financing uses for debit service fund)

Debit service fund Cash	80,000
Other financing sources − transfer in from capital project fund		80,000
(Premium in capital project transferred from debit service)

Capital project fund expense	45,000
Voucher payable		45,000
(Expense on account of capital project recognized)

Vouchers payable	45,000
Cash		45,000
(Paid cash for recognized vouchers)

Capital project fund encumbrances	4,500,000
Budgetary fund balance − reserved for Encumbrances		4,500,000
(Encumbrances for capital project created)

Capital project fund budgetary fund balance − reserved for Encumbrances	2,000,000
Encumbrances		2,000,000
(Encumbrances reversed at the time of designated expenditure)

Expenditure	2,000,000
Contracts payable		1,800,000
Contract payable − Retained percentage		200,000
(Designated expenditure recognized)

Capital project fund contracts payable	1,800,000
Cash		1,800,000
(Cash paid on contracts payable)

Closing entries on capital project fund:

Other financing sources − bond issue	5,000,000
Other financing sources − bond premium	80,000
Expenditures		2,045,000
Other financing uses − transfer out to debt service fund		80,000
Fund balance − unreserved		2,955,000
(Closing entry passed and transferring balance to fund balance unreserved)

Budgetary fund balance − reserved for encumbrances	2,500,000
Encumbrances		2,500,000
(Outstanding encumbrances at the end transferred to reserve fund account)

Fund balance − unreserved	2,500,000
Fund balance − reserved for encumbrances		2,500,000
(Outstanding encumbrances balance transferred to fund balance unreserved at the end of the year)

b

To determine

Introduction: Capital project fund includes financial resources acquired for capital projects such as the construction of capital facilities, acquisition for the benefit of citizens, for example, construction of parks. This fund is created only at the time of construction or acquisition of the facility and closed once it is achieved.

The balance sheet of capital project fund at June 30 20X3

b

Expert Solution

Answer to Problem 18.15P

Net assets as per capital project fund balance sheet $3,155,000.

Explanation of Solution

W City

Capital Project Fund Balance Sheet

December 31, 20X2

	$	$
Assets:
Cash		3,155,000
Total assets		3,155,000

Liabilities and fund balance:
Contracts payable − retained percentage		200,000
Fund balance:
Reserved for encumbrances	2,500,000
Unreserved	455,000	2,955,000
Total liabilities and fund balance		3,155,000

c

To determine

Introduction: Capital project fund includes financial resources acquired for capital projects such as the construction of capital facilities, acquisition for the benefit of citizens, for example, construction of parks. This fund is created only at the time of construction or acquisition of the facility and closed once it is achieved.

The preparation of Statement of revenues, expenses and changes in fund net position for 20X3

c

Expert Solution

Answer to Problem 18.15P

Fund balance as on June 30 20X3 $2,955,000.

Explanation of Solution

W City

Statement of Revenue, Expenses and

Change in Fund Net Assets

December 31, 20X2

	$	$
Expenditure:
Capital Outlays:
Building removal		45,000
Building constriction		2,000,000
Total expenditures		2,045,000
Deficiency of revenue over expenditures		(2,045,000)

Proceeds of serial bonds		5,080,000
Transfer out to debt service fund		(80,000)
Total other financing sources (uses)		5,000,000
Net change in fund balance		2,955,000
Fund balance July 1 20X2		0
Fund balance June 30 20X3		2,955,000

Answer 6

Chapter 18, Problem 18.15P

a

To determine

Introduction: Capital project fund includes financial resources acquired for capital projects such as the construction of capital facilities, acquisition for the benefit of citizens, for example, construction of parks. This fund is created only at the time of construction or acquisition of the facility and closed once it is achieved.

The entries for all the funds involved and also the closing entries for capital project fund.

a

Expert Solution

Explanation of Solution

Particulars	Debit $	Credit $
CPE cash	5,080,000
Other financial sources − bond issue		5,000,000
Other financial sources − bond premium		80,000
(Issued bonds at premium for capital project fund)

Other financing uses − transfer in capital project fund	80,000
Cash		80,000
(Premium transferred to other financing uses for debit service fund)

Debit service fund Cash	80,000
Other financing sources − transfer in from capital project fund		80,000
(Premium in capital project transferred from debit service)

Capital project fund expense	45,000
Voucher payable		45,000
(Expense on account of capital project recognized)

Vouchers payable	45,000
Cash		45,000
(Paid cash for recognized vouchers)

Capital project fund encumbrances	4,500,000
Budgetary fund balance − reserved for Encumbrances		4,500,000
(Encumbrances for capital project created)

Capital project fund budgetary fund balance − reserved for Encumbrances	2,000,000
Encumbrances		2,000,000
(Encumbrances reversed at the time of designated expenditure)

Expenditure	2,000,000
Contracts payable		1,800,000
Contract payable − Retained percentage		200,000
(Designated expenditure recognized)

Capital project fund contracts payable	1,800,000
Cash		1,800,000
(Cash paid on contracts payable)

Closing entries on capital project fund:

Other financing sources − bond issue	5,000,000
Other financing sources − bond premium	80,000
Expenditures		2,045,000
Other financing uses − transfer out to debt service fund		80,000
Fund balance − unreserved		2,955,000
(Closing entry passed and transferring balance to fund balance unreserved)

Budgetary fund balance − reserved for encumbrances	2,500,000
Encumbrances		2,500,000
(Outstanding encumbrances at the end transferred to reserve fund account)

Fund balance − unreserved	2,500,000
Fund balance − reserved for encumbrances		2,500,000
(Outstanding encumbrances balance transferred to fund balance unreserved at the end of the year)

Answer 7

Chapter 18, Problem 18.15P

a

To determine

Introduction: Capital project fund includes financial resources acquired for capital projects such as the construction of capital facilities, acquisition for the benefit of citizens, for example, construction of parks. This fund is created only at the time of construction or acquisition of the facility and closed once it is achieved.

The entries for all the funds involved and also the closing entries for capital project fund.

Answer 8

a

Expert Solution

Explanation of Solution

Particulars	Debit $	Credit $
CPE cash	5,080,000
Other financial sources − bond issue		5,000,000
Other financial sources − bond premium		80,000
(Issued bonds at premium for capital project fund)

Other financing uses − transfer in capital project fund	80,000
Cash		80,000
(Premium transferred to other financing uses for debit service fund)

Debit service fund Cash	80,000
Other financing sources − transfer in from capital project fund		80,000
(Premium in capital project transferred from debit service)

Capital project fund expense	45,000
Voucher payable		45,000
(Expense on account of capital project recognized)

Vouchers payable	45,000
Cash		45,000
(Paid cash for recognized vouchers)

Capital project fund encumbrances	4,500,000
Budgetary fund balance − reserved for Encumbrances		4,500,000
(Encumbrances for capital project created)

Capital project fund budgetary fund balance − reserved for Encumbrances	2,000,000
Encumbrances		2,000,000
(Encumbrances reversed at the time of designated expenditure)

Expenditure	2,000,000
Contracts payable		1,800,000
Contract payable − Retained percentage		200,000
(Designated expenditure recognized)

Capital project fund contracts payable	1,800,000
Cash		1,800,000
(Cash paid on contracts payable)

Closing entries on capital project fund:

Other financing sources − bond issue	5,000,000
Other financing sources − bond premium	80,000
Expenditures		2,045,000
Other financing uses − transfer out to debt service fund		80,000
Fund balance − unreserved		2,955,000
(Closing entry passed and transferring balance to fund balance unreserved)

Budgetary fund balance − reserved for encumbrances	2,500,000
Encumbrances		2,500,000
(Outstanding encumbrances at the end transferred to reserve fund account)

Fund balance − unreserved	2,500,000
Fund balance − reserved for encumbrances		2,500,000
(Outstanding encumbrances balance transferred to fund balance unreserved at the end of the year)

Answer 9

a

Expert Solution

Answer 10

a

Expert Solution

Answer 11

Expert Solution

Answer 12

b

To determine

Introduction: Capital project fund includes financial resources acquired for capital projects such as the construction of capital facilities, acquisition for the benefit of citizens, for example, construction of parks. This fund is created only at the time of construction or acquisition of the facility and closed once it is achieved.

The balance sheet of capital project fund at June 30 20X3

b

Expert Solution

Answer to Problem 18.15P

Net assets as per capital project fund balance sheet $3,155,000.

Explanation of Solution

W City

Capital Project Fund Balance Sheet

December 31, 20X2

	$	$
Assets:
Cash		3,155,000
Total assets		3,155,000

Liabilities and fund balance:
Contracts payable − retained percentage		200,000
Fund balance:
Reserved for encumbrances	2,500,000
Unreserved	455,000	2,955,000
Total liabilities and fund balance		3,155,000

Answer 13

b

To determine

Introduction: Capital project fund includes financial resources acquired for capital projects such as the construction of capital facilities, acquisition for the benefit of citizens, for example, construction of parks. This fund is created only at the time of construction or acquisition of the facility and closed once it is achieved.

The balance sheet of capital project fund at June 30 20X3

Answer 14

b

Expert Solution

Answer to Problem 18.15P

Net assets as per capital project fund balance sheet $3,155,000.

Answer 15

b

Expert Solution

Answer 16

b

Expert Solution

Answer 17

Expert Solution

Answer 18

Explanation of Solution

W City

Capital Project Fund Balance Sheet

December 31, 20X2

	$	$
Assets:
Cash		3,155,000
Total assets		3,155,000

Liabilities and fund balance:
Contracts payable − retained percentage		200,000
Fund balance:
Reserved for encumbrances	2,500,000
Unreserved	455,000	2,955,000
Total liabilities and fund balance		3,155,000

Answer 19

c

To determine

Introduction: Capital project fund includes financial resources acquired for capital projects such as the construction of capital facilities, acquisition for the benefit of citizens, for example, construction of parks. This fund is created only at the time of construction or acquisition of the facility and closed once it is achieved.

The preparation of Statement of revenues, expenses and changes in fund net position for 20X3

c

Expert Solution

Answer to Problem 18.15P

Fund balance as on June 30 20X3 $2,955,000.

Explanation of Solution

W City

Statement of Revenue, Expenses and

Change in Fund Net Assets

December 31, 20X2

	$	$
Expenditure:
Capital Outlays:
Building removal		45,000
Building constriction		2,000,000
Total expenditures		2,045,000
Deficiency of revenue over expenditures		(2,045,000)

Proceeds of serial bonds		5,080,000
Transfer out to debt service fund		(80,000)
Total other financing sources (uses)		5,000,000
Net change in fund balance		2,955,000
Fund balance July 1 20X2		0
Fund balance June 30 20X3		2,955,000

Answer 20

c

To determine

Introduction: Capital project fund includes financial resources acquired for capital projects such as the construction of capital facilities, acquisition for the benefit of citizens, for example, construction of parks. This fund is created only at the time of construction or acquisition of the facility and closed once it is achieved.

The preparation of Statement of revenues, expenses and changes in fund net position for 20X3

Answer 21

c

Expert Solution

Answer to Problem 18.15P

Fund balance as on June 30 20X3 $2,955,000.

Answer 22

c

Expert Solution

Answer 23

c

Expert Solution

Answer 24

Expert Solution

Answer 25

Explanation of Solution

W City

Statement of Revenue, Expenses and

Change in Fund Net Assets

December 31, 20X2

	$	$
Expenditure:
Capital Outlays:
Building removal		45,000
Building constriction		2,000,000
Total expenditures		2,045,000
Deficiency of revenue over expenditures		(2,045,000)

Proceeds of serial bonds		5,080,000
Transfer out to debt service fund		(80,000)
Total other financing sources (uses)		5,000,000
Net change in fund balance		2,955,000
Fund balance July 1 20X2		0
Fund balance June 30 20X3		2,955,000