Chapter 7, Problem 5P

(Statement of Revenues, Expenditures, and Changes in Fund Balance) Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the San Jacinto County Courthouse Capital Projects Fund for the year ended June 30, 20X9, given the following information:

1. 1. In June 20X8, a $10,000,000 bond referendum is voted for and approved by the citizens of San Jacinto County for the construction of a new courthouse.
2. 2. On July 1, 20X8, a Capital Projects Fund is established for this project with a transfer of $500,000 from the General Fund.
3. 3. The county commissioners approve another $3,000,000 transfer of General Fund monies previously committed for this project. The transfer order calls for $2,000,000 to be sent to the Courthouse Capital Projects Fund to begin construction of the courthouse and $1,000,000 to the Courthouse Debt Service Fund to help satisfy the bond indenture requirements. The finance director completes these transfers on August 1, 20X8.
4. 4. The county signs a contract for $10,000,000 on August 5, 20X8, for construction of the new courthouse.
5. 5. On January 2, 20X9, the county issues the $10,000,000 face value courthouse bonds at 101, net of issue costs of $90,000. Also on this date, the county receives a $2,000,000 bill from the contractor for work completed to date.
6. 6. According to the bond covenants, the county transfers the bond premium (net of bond issuance costs) to the Courthouse Debt Service Fund on January 4, 20X9.
7. 7. On January 31, 20X9, the county pays the contractor’s bill from January 2nd, less a 5% retainage.
8. 8. On June 30, 20X9, the county receives $80,000 from the bank for interest on idle cash and a $1,250,000 bill from the contractor for work completed between January 1st and fiscal year end.