Question

The following transactions took place in the town of Burchette during 20X3: 1. A bond issue of $12,000,000 was authorized for the construction of a library, and the estimated bond proceeds and related appropriations were recorded in the General Ledger accounts of a new Capital Projects Fund. 2. The bonds were sold at a premium of $90,000. 3.The cost of issuing the bonds, $80,000, was paid. 4. An order was placed for material estimated to cost $6,500,000. 5. Salaries and wages of $500,000 were paid. 6. The premium, net bond of issuance costs, was transferred to a Debt Service Fund. The following transactions took place in 20X4: 7. The materials were received, the actual cost was $6,585,000. 8. Salaries and wages of $4,010,000 were paid. 9. All outstanding bills were paid. 10. The project was completed. The accounts were closed, and the remaining balance was transferred to a Debt Service Fund. a. Prepare all journal entries (budgetary and actual), including closing entries, to record the Capital Projects Fund transfers for 20X3 and 20X4. b. Prepare a Capital Projects Fund balance sheet as of December 31, 20X3. c. Prepare a Capital Projects Fund Statement of Revenues, Expenditures, and Changes in Fund Balance for the project, including (1) the year ended December 31, 20X3, and (2) a separate budgetary combined comparison statement for the years ended December 31 20X3 and 20X4.

Can anybody help with the closing entries for both 20x3 and 20x4? I see different answers and could you an explanation, especially on the fund balance/appropriations entry for 20x3. One post showed an entry to fund balance debit $5 mil and credit appropriations $5 mil. When a comment was posted the response was I don't know, just the answer I was given.

Answer 1