Question

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. 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. On July 1, 20X8, a Capital Projects Fund is established for this project with a transfer of $500,000 from the General Fund.

3. The county commissioners approve another $3,000,000 transfer of General Fund monies previously committed for this project. The transfer order call 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. The county signs a contract for $10,000,000 on August 5, 20X8, for construction of the new courthouse.

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. 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. On January 31, 20X9, the county pays the contractor's bill from January 2nd, less a 5% retainage.

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.

Answer 1

										Capital projects fund						Courthouse Debt service fund
				Transfer from General fund A/c						OFU Transfer to court house					04-01-2019	To Bond issue exp	90,000	01-08-2018	By transfer from General fund		10,00,000
		01-07-2018	To Capital projects fund		5,00,000					01-07-2018	By transfer from General fund		5,00,000		30-06-2019	To balance c/d	10,10,000	04-01-2019	By transfer from bond premium a/c		1,00,000
		01-08-2018	To Capital projects fund		20,00,000					01-08-2018	By transfer from General fund		20,00,000				11,00,000				11,00,000
		01-08-2018	To Court house debt service fund		10,00,000								25,00,000
					35,00,000
		OFS Bonds A/c								Bond Premium A/c						Expenditure-Bond issue costs
			02-01-2019	By Balance(Bond Issue)	1,00,00,000		04-01-2019	To Debt service fund	1,00,000	02-01-2019	By Cash	1,00,000				02-01-2019	To Issue Exp	90,000	04-01-2019	By debt service fund	90,000
				(100000 bonds*$100)							(100000 bonds*$1)
					1,00,00,000				1,00,000			1,00,000						90,000			90,000
				Cash A/c
	02-01-2019	To Bonds	10010000	31-01-2019	By Vouchers Payable	19,00,000				Vouchers payable						Retainage Payable
		(10000000+100000-90000)		30-06-2019	By balance C/d	81,90,000	31-01-2019	To Cash	19,00,000	02-01-2019	Contractor work bill payable	20,00,000					31-01-2019	To Vouchers Payable	1,00,000
	30-06-2019	To Interest	80000					(2000000*95%)		03-06-2019	Contractor work bill payable	12,50,000							1,00,000
			10090000			1,00,90,000	31-01-2019	To Retainage payable	1,00,000
							30-06-2019	To balance C/d	12,50,000
									32,50,000			32,50,000				Expenditure Capiital Outlay
			Revenues-Interest												02-01-2019	Contractor work bill payable	20,00,000
				30-06-2019	By cash	80,000									03-06-2019	Contractor work bill payable	12,50,000
						80,000											32,50,000
														Particulars Debit Credit Cash      81,90,000 Vouchers Payable            12,50,000 Retainage Payable               1,00,000 Revenue-Interest                  80,000 Expenditures-Capital Outlay      32,50,000 Expenditures-Bond issue costs                     -   OFS Transfers            25,00,000 Transfer from GF      35,00,000 Transfer to Courthouse DSF            10,10,000 OFS Bond Proceeds         1,00,00,000 OFS Bonds premium                            -   Total 1,49,40,000         1,49,40,000