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.

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Expert Solution

ekkarill92 answered 1 year ago

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