In: Accounting
Please prepare Governmental Activities Journal,
not General Fund.
Riverside began work on an outdoor amphitheater and concession
stand at the city's park. It is to be financed by a $3,500,000 bond
issue and supplemented by a $500,000 General Fund transfer. The
following transactions occurred in 2017:
1. The General Fund transferred $500,000 to the Park Building Capital Projects Fund.
2. A contract was signed with Restin Construction Company for the major part of the project on a bid of $2,700,000.
3. Preliminary planning and engineering costs of $69,000 were vouchered for the Great Pacific Engineering Company. (This cost had not been encumbered.)
4. A payable was recorded for an $18,500 billing from the Water and Sewer enterprise fund for the cost of extending water pipes to the new concession stand.
5. An invoice in the amount of $1,000,000 was received from Restin for progress to date on the project.
6. The $3,500,000 bonds were issued at par.
7. The amount billed by the contractor (see Transaction 5) less 5 percent retainage was paid.
8. Temporary investments were purchased at a cost of $1,800,000.
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