The citizens of Spencer County approved the issuance of $2,004,000 in 6 percent general obligation bonds...

The citizens of Spencer County approved the issuance of $2,004,000 in 6 percent general obligation bonds to finance the construction of a courthouse annex. A capital projects fund was established for that purpose. The preclosing trial balance of the courthouse annex capital project fund follows:

Trial Balance—December 31, 2017	Debits		Credits
Cash	$	906,000
Contract payable			$	550,000
Due from state government		189,000
Encumbrances		106,000
Expenditures—capital		1,852,000
Intergovernmental grant				393,000
OFS: premium on bonds				55,000
OFS: proceeds sale of bonds				2,004,000
Budgetary fund balance— Reserve for encumbrances				106,000
OFU: Transfer out		55,000
	$	3,108,000	$	3,108,000

Required:
a. Prepare any closing entries necessary at year-end.
b. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the courthouse annex capital project fund.
c. Prepare a Balance Sheet for the courthouse annex capital project fund, assuming all unexpended resources are restricted to construction of the courthouse annex.

Expert Solution

ekkarill92 answered 2 years ago

The citizens of Spencer County approved the issuance of $2,003,000 in 6 percent general obligation bonds...

The citizens of Spencer County approved the issuance of $2,003,000 in 6 percent general obligation bonds to finance the construction of a courthouse annex. A capital projects fund was established for that purpose. The preclosing trial balance of the courthouse annex capital project fund follows: Trial Balance-December 31, 2017 Debits Credits Cash $905,000 Contracts payable $550,000 Due from state government 188,000 Encumbrances 105,000 Expenditures-capital 1,851,000 Intergovernmental grant 391,000 OFS: premium on bonds 54,000 OFS: proceeds sale of bonds 2,003,000 Budgetary...

On May 1, City of Cerone approved $10000000 issue of 6% general obligation bonds maturing at...

On May 1, City of Cerone approved $10000000 issue of 6% general obligation bonds maturing at 20yrs. Proceeds will be used to finance construction of a new civic center. Total cost estimated at $15000000, the remaining $5000000 are financed by state grant which was awarded. How do you write the journal entries for the below transactions for a capital fund project? 1. July 1 the general fund loaned $500000 to the civic center construction fund for engineering and other expenses...

The voters of the City of Monroe approved the issuance of tax-supported bonds in the face...

The voters of the City of Monroe approved the issuance of tax-supported bonds in the face amount of $4,000,000 for the construction and equipping of a new City Jail. Architects were to be retained, and construction was to be completed by outside contractors. In addition to the bond proceeds, a $1,340,000 grant was expected from the state government. Required: a. Open a general journal for the City Jail Annex Construction Fund. Record the following transactions and post to the general...

The Village of Hawksbill issued $4,200,000 in 5 percent general obligation, tax-supported bonds on July 1,...

The Village of Hawksbill issued $4,200,000 in 5 percent general obligation, tax-supported bonds on July 1, 2016, at 101. A fiscal agent is not used. Resources for principal and interest payments are to come from the General Fund. Interest payment dates are December 31 and June 30. The first of 20 annual principal payments is to be made June 30, 2017. Hawksbill has a calendar fiscal year. A capital projects fund transferred the premium (in the amount of $45,000) to...

The Village of Hawksbill issued $4100,000 in 5 percent general obligation, tax-supported bonds on July 1,...

The Village of Hawksbill issued $4100,000 in 5 percent general obligation, tax-supported bonds on July 1, 2019, at 101. A fiscal agent is not used. Resources for principal and interest payments are to come from the General Fund Interest payment dates are December 31 and June 30. The first of 20 annual principal payments are to made on June 30, 2020. Hawksbill has a calendar fiscal year. 1. A capital projects fund transferred the premium ( in the amount of...

The Village of Hawksbill issued $4,500,000 in 5 percent general obligation, tax-supported bonds on July 1,...

The Village of Hawksbill issued $4,500,000 in 5 percent general obligation, tax-supported bonds on July 1, 2016, at 101. A fiscal agent is not used. Resources for principal and interest payments are to come from the General Fund. Interest payment dates are December 31 and June 30. The first of 20 annual principal payments is to be made June 30, 2017. Hawksbill has a calendar fiscal year. A capital projects fund transferred the premium (in the amount of $52,500) to...

Presley Company sells $1,000,000 general obligation bonds for 102. The interest rate on the bonds, paid...

Presley Company sells $1,000,000 general obligation bonds for 102. The interest rate on the bonds, paid quarterly, is 5 percent. a. Calculate the amount that the company will actually receive from the sale of the bonds. b. Calculate the amount of both the quarterly and the total annual cash interest that the company will be required to pay.

The following transaction refers to one of the Districts a. The District issues general obligation bonds...

The following transaction refers to one of the Districts a. The District issues general obligation bonds in the amount of $900,000, receiving cash for the full-face amount of the bonds. The cash will be used to buy capital assets. b. The District buys a prefabricated building for $750, 000, using part of the bond proceeds. The building is delivered and the invoice for the building is approved. c. The invoice approved in b. is paid. d. The General Fund transfers...

California issued debt (general obligation bonds) to fund the state budget and must now repay what...

California issued debt (general obligation bonds) to fund the state budget and must now repay what it borrowed. Given the facts above, please indicate if you think that California’s debt is more likely to be internal or external. How do you know? Furthermore, is the repayment of state and local government debt likely to drain purchasing power from citizens in those areas?

A city-issued 25-year general obligation (G.O.) $5,000 face value bonds ten years ago, with a coupon...

A city-issued 25-year general obligation (G.O.) $5,000 face value bonds ten years ago, with a coupon rate of 8 percent, payable semiannually. The current market rate of interest on similar bonds is 10 percent. Answer the following questions. (a) What was the market price of the bonds on the day they were issued? (b) What is the market price of the bond today? (c) What will be the bonds’ current yield (C.Y.) and capital gain yield (C.G.Y.) in the eleventh...

Question