Question

In: Accounting

Chesterfield County had the following transactions. a. A budget is passed for all ongoing activities. Revenue...

Chesterfield County had the following transactions.

a. A budget is passed for all ongoing activities. Revenue is anticipated to be $940,750 with approved spending of $631,000 and operating transfers out of $248,000.

b. A contract is signed with a construction company to build a new central office building for the government at a cost of $6,300,000 . A budget for this project has previously been recorded.

c. Bonds are sold for $6,300,000 (face value) to finance construction of the new office building.

d. The new building is completed. An invoice for $6,300,000 is received and paid.

e. Previously unrestricted cash of $1,220,000 is set aside to begin paying the bonds issued in (c).

f. A portion of the bonds comes due and $1,220,000 is paid. Of this total, $150,000 represents interest. The interest had not been previously accrued.

g. Citizens' property tax levies are assessed. Total billing for this tax is $815,000. On this date, the assessment is a legally enforceable claim according to the laws of this state. The money to be received is designated for the current period and 90 percent is assumed to be collectible in this period with receipt of an additional 6 percent during subsequent periods but in time to be available to pay current period claims. The remainder is expected to be uncollectible.

h. Cash of $169,000 is received from a toll road. This money is restricted for highway maintenance.

i. The county received investments valued at $379,000 as a donation from a grateful citizen. Income from these investments must be used to beautify local parks.

Prepare the entries first for fund financial statements and then for government-wide financial statements.

Solutions

Expert Solution

FUND-BASED FINANCIAL STATEMENTS Debit Credit
a. General Fund
Estimated Revenues Control $          940,750
 Appropriations Control $          631,000
    Estimated Other Financial Uses - Operating Transfers $          248,000
    Budgetary Fund Balance $            61,750
b.
Encumbrances Control $       6,300,000
 Fund Balance—Reserved for Encumbrances $       6,300,000
c. Capital Projects Fund
Cash $       6,300,000
 Other Financing Sources Control $       6,300,000
d. Capital Projects Fund
Fund Balance—Reserved for Encumbrances $       6,300,000
 Encumbrances Control $       6,300,000
Expenditures Control $       6,300,000
 Contracts Payable $       6,300,000
Contracts Payable $       6,300,000
 Cash $       6,300,000
e. General Fund
Other Financing Uses Control $         1,220,000
 Cash $        1,220,000
Debt Service Fund $         1,220,000
Cash $        1,220,000
    Other Financing Resources
f. Debt Service Fund
Expenditures Control—Bonds $       1,070,000
Expenditures Control—Interest $          150,000
 Cash $        1,220,000
g. General Fund
Property Taxes Receivable $          815,000
 Revenues – Property Taxes $          782,400
 Allowance for Uncollectible Taxes (4%) $            32,600
h. Special Revenue Fund
Cash $          169,000
 Revenues Control $          169,000
i. Permanent Fund
Investments $          379,000
 Contribution Revenue $          379,000
GOVERNMENT-WIDE FINANCIAL STATEMENTS Debit Credit
a. No entry
b. No entry
c. Governmental Activities
Cash $       6,300,000
    Bonds Payable $       6,300,000
d. Governmental Activities
Buildings $       6,300,000
 Cash $       6,300,000
e. No entry
f. Governmental Activities
Bonds Payable $       1,070,000
Interest Expense $          150,000
 Cash $        1,220,000
g. Governmental Activites
Proprety Taxes Receivable $          815,000
 Revenues – Property Taxes $          782,400
 Allowance for Uncollectible Taxes $            32,600
h.
Cash $          169,000
 Revenues—Reserved for Highway Maintenance $          169,000
i. Government Activities
Investments $          379,000
 Revenues—Donations $          379,000

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