Question
In: Accounting
Full problem is give, but ONLY NEED 9-15 ANSWERED Prepare all entries that a state or...
Full problem is give, but ONLY NEED 9-15 ANSWERED
Prepare all entries that a state or local government should make to record the following transactions and events:
Full problem is give, but ONLY NEED 9-15 ANSWERED
1. A $2,500,000 term bond issue to finance construction of a new
brige was issued at a $35,000 premium. $10,000 of bond issue costs
were paid from the proceeds.
2. The bond premium, less the bond issue costs, was transferred to
the Debt Service Fund for the term bonds.
3. A $400,000 contribution was paid from the General Fund to the
Debt Service Fund: $150,000 for interest payments and $250,000 to
provide for future principal payments.
4. Bridge construction expendtirues were vouchered, $2,480,000, for
improvements.
5. The remaining unused bond proceeds of the Bridge Capital
Projects Fund were transferred to the Debt Service Fund for use as
needed.
6. Maturing long-term notes payable ($50,000) and interest
($30,000) were paid from a Debt Service Fund.
7. The Police Department entered into a capital lease of equipment
with a capitalizable cost of $1,250,000. A $125,000 down payment
was made at the inception of the lease.
8. Lease payments of $250,000, including $100,000 interest, were
paid.
9. The government pays retiree health care benefits on a
pay-as-you-go basis. Payments for the year totaled $400,000. The
actuarially required contribution computed in accordance with the
parameters required by GAAP was $3,200,000.
10. Inspection services were performed (internal services) by a
department financed through the General Fund for a capital project
and billed to the project, $3,000.
11. Maintenance services of $1,800 (recorded earlier as CPF
expenditures) were rendered by construction workers paid from a
Capital Projects Fund for a department financed through the General
Fund. (Record the recognition of this correction prior to
payment.)
12. a 6-month loan of $400,000 to be repaid during the current year
was made from the General Fund to the Debt Service Fund.
13. A 2-year loan of $2,000,000 was made from the General Fund to a
Capital Projects Fund.
14. A government sold police vehicles for $65,000. The vehicles
originally cost around $480,000 when purchased and are 80%
depreciated. The sale proceeds are unrestricted.
15. Cash payments for claims totaled $2,000,000. The fund liability
for claims and judgements increased $100,000, to $225,000. The
noncurrent portion of the payable decreased by $335,000.
Full problem is give, but ONLY NEED 9-15 ANSWERED
Solutions
Expert Solution
1. Capital Projects Fund
Expenditures – Bond Issue Costs ...................................... 10,000
Cash..................................................................................... 2,525,000
Other Financing Sources – Bonds.................................. 2,500,000
Other Financing Sources – Premium on Bonds.............. 35,000
To record the issue of term bonds at a premium.
GCA-GLTL accounts
Net Assets........................................................................... 2,535,000
Term Bonds Payable....................................................... 2,500,000
Premium on Term Bonds ............................................... 35,000
To record liability for term bonds issued.
2. Capital Projects Fund
Transfer to Debt Service Fund............................................ 25,000
Cash................................................................................ 25,000
To record transfer of cash representing premium on bonds to the Debt Service Fund.
Debt Service Fund
Cash..................................................................................... 25,000
Transfer from Capital Projects Fund.............................. 25,000
To record receipt of cash representing premium on bonds.
3. General Fund
Transfer to Debt Service Fund............................................ 400,000
Cash............................................................................... 400,000
To record payment of contribution to the Debt Service Fund.
Debt Service Fund
Cash..................................................................................... 400,000
Transfer from General Fund........................................... 400,000
To record receipt of contribution from the Debt Service Fund.
4. Capital Projects Fund
Expenditures—Capital Outlay............................................ 2,480,000
Vouchers Payable .......................................................... 2,480,000
To record bridge construction expenditures.
GCA-GLTL accounts
Streets and Other Infrastructure ........................................ 2,480,000
Net Assets...................................................................... 2,480,000
To record bridge construction.
5. Capital Projects Fund
Transfer to Debt Service Fund ........................................... 20,000
Cash ............................................................................... 20,000
To record transfer of balance from the Capital Projects Fund
to the Debt Service Fund.
Debt Service Fund
Cash .................................................................................... 20,000
Transfer from Capital Projects Fund.............................. 20,000
To record receipt of transfer from Capital Projects Fund.
6. Debt Service Fund
Expenditures – Note Principal Retirement.......................... 50,000
Expenditures – Interest....................................................... 30,000
Cash................................................................................ 80,000
To record.
GCA-GLTL accounts
Notes Payable...................................................................... 50,000
Net Assets…………………………………….............. 50,000
To record retirement of notes payable.
7. General Fund
Expenditure – Capital Outlay............................................. 1,250,000
Other Financing Sources – Capital Lease ...................... 1,125,000
Cash................................................................................ 125,000
To record the inception of a capital lease and the initial down
payment.
GCA-GLTL accounts
Equipment Under Capital Lease......................................... 1,250,000
Net Assets ..................................................................... 125,000
Capital Lease Liabilities................................................. 1,125,000
To record capital lease.
8. General Fund
Expenditures – Capital Lease Principal .............................. 150,000
Expenditures – Interest....................................................... 100,000
Cash................................................................................ 250,000
To record periodic lease payments.
GCA-GLTL accounts
Capital Lease Liabilities...................................................... 150,000
Net Assets...................................................................... 150,000
To record retirement of a portion of the capital lease liabilities.
9. General Fund
Expenditures—Retiree Benefits ........................................ 400,000
Cash ............................................................................... 400,000
To record payment of retiree benefits.
GCA-GLTL accounts
Net Assets........................................................................... 2,800,000
Unfunded OPEB Obligation ......................................... 2,800,000
To record liability for underfunded OPEB contribution.
10. General Fund
Due from Capital Projects Fund......................................... 3,000
Revenues – Inspection Service....................................... 3,000
To record revenues for inspection services for Capital Projects Fund.
Capital Projects Fund
Expenditures – Capital Outlay............................................ 3,000
Due to General Fund ..................................................... 3,000
To record cost of inspection services provided by the General Fund.
GCA-GLTL accounts
Construction in Progress..................................................... 3,000
Net Assets...................................................................... 3,000
To record inspection cost as capital asset cost.
11. Capital Projects Fund
Due from General Fund ..................................................... 1,800
Expenditures – Capital Outlay....................................... 1,800
To record reduction of expenditures that should be reported in the General Fund.
General Fund
Expenditures - Maintenance................................................ 1,800
Due to Capital Projects Fund......................................... 1,800
To record amount due to the Capital Projects Fund.
GCA-GLTL accounts
Net Assets........................................................................... 1,800
Construction in Progress................................................. 1,800
To record reduction of construction cost by reimbursement.
12. General Fund
Due from Debt Service Fund ............................................. 400,000
Cash ............................................................................... 400,000
To record short-term loan to the Debt Service Fund.
Debt Service Fund
Cash..................................................................................... 400,000
Due to General Fund...................................................... 400,000
To record short-term loan from the General Fund.
13. General Fund
Advance to Capital Projects Fund ..................................... 2,000,000
Fund Balance...................................................................... 2,000,000
Cash................................................................................ 2,000,000
Reserve for Advances (Nonspendable fund balance).... 2,000,000
To record two-year advance to the Capital Projects Fund.
Capital Projects Fund
Cash..................................................................................... 2,000,000
Advance from General Fund.......................................... 2,000,000
To record two-year advance from the General Fund.
14. General Fund
Cash..................................................................................... 65,000
Other Financing Sources – Sale of Capital Assets......... 65,000
To record proceeds from sale of general capital assets.
GCA-GLTL accounts
Net Assets........................................................................... 96,000
Accumulated Depreciation.................................................. 384,000
Vehicles.......................................................................... 480,000
To remove general capital assets upon sale.
15. General Fund
Expenditures – Claims and Judgments............................... 2,100,000
Cash................................................................................ 2,000,000
Claims and Judgments Payable...................................... 100,000
To record claims and judgments incurred and paid and due and payable.
GCA-GLTL accounts
Claims and Judgments Payable........................................... 335,000
Net Assets...................................................................... 335,000
To record the decrease in the claims and judgments long-term liability.
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