Question

Chesterfield County had the following transactions. A budget is passed for all ongoing activities. Revenue is anticipated to be $871,250 with approved spending of $559,000 and operating transfers out of $257,000. A contract is signed with a construction company to build a new central office building for the government at a cost of $6,700,000 . A budget for this project has previously been recorded. Bonds are sold for $6,700,000 (face value) to finance construction of the new office building. The new building is completed. An invoice for $6,700,000 is received and paid. Previously unrestricted cash of $1,300,000 is set aside to begin paying the bonds issued in (c). A portion of the bonds comes due and $1,300,000 is paid. Of this total, $175,000 represents interest. The interest had not been previously accrued. Citizens' property tax levies are assessed. Total billing for this tax is $810,000. 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. Cash of $150,000 is received from a toll road. This money is restricted for highway maintenance. The county received investments valued at $322,000 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.

Answer 1

Answer:

CHESTERFIELD COUNTY Fund-Based Financial Statements General Journal
Event	Fund	Particulars	Debit $	Credit $
a)	General	Estimated revenues	871,250
		Appropriations		559,000
		Estimated other financing uses-operating Transfers		257,000
		Budgetary Fund Balance		55,250
b)	Capital Projects	Encumbrances - Office Building	6,700,000
		Fund Balance-Reserved for Park Beautification		6,700,000
c)	Capital Projects	Cash	6,700,000
		Other financing uses		6,700,000
d)	Capital Projects	Fund Balance-Reserved for Park Beautification - Other financing uses	6,700,000
		Encumbrances Outstanding		6,700,000
		Expenditures	6,700,000
		Contracts Payable		6,700,000
		Contracts Payable	6,700,000
		Cash		6,700,000
e)	General	Other financing resources	1,300,000
		Cash		1,300,000
	Debt Service	Cash	1,300,000
		Other financing resources		1,300,000
f)	Debt Service	Expenditures - Bonds	1,125,000
		Expenditures – interest	175,000
		Cash		1,300,000
g)	General	Property Taxes Receivable	810,000
		Revenues		777,600
		Allowance for Uncollectible Taxes (4%)		32,400
h)	General	Cash	150,000
		Revenues		150,000
i)	Permanent	Investments	322,000
		Contribution Revenue		322,000

CHESTERFIELD COUNTY Government-Wide Financial Statements General Journal
Event	Fund	Particulars	Debit $	Credit $
a)		No Entry
b)		No Entry
c)	Governmental Activities	Cash	6,700,000
		Bonds Payable		6,700,000
d)	Governmental Activities	Buildings	6,700,000
		Cash		6,700,000
e)		No Entry
f)	Governmental Activities	Bonds Payable	1,125,000
		Interest Expense	175,000
		Cash		1,300,000
g)	Governmental Activities	Property Taxes Receivable	810,000
		Revenues Control		777,600
		Allowance for Uncollectible Taxes		32,400
h)	Governmental Activities	Cash	150,000
		Revenue		150,000
i)	Governmental Activities	Investment	322,000
		Revenue		322,000

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