Accounting governmental

Question: #4023

MULTI-FUND PROBLEM

You are a Hometown accountant. The Capital Project Fund has just been created to account for resources received and expended for the construction of a new Health Center. Funding for the Health Center is being provided by a $5,000,000 General Obligation Bond sale, a direct transfer from the General Fund, and a Federal Grant. The grant terms provide that the Federal Government will pay only up to 20% of all project expenditures incurred; unused funds must be returned at the completion of the project.

Required Elements (total 50 points) :

A) (31pts) Journalize the requested transactions for the

a. Capital Project Fund

b. Debt Service Fund

c. General Fund

B) (9pts) Prepare closing entries for the Capital Projects Fund.

C) (10pts) Provide the missing values for the Capital Projects and Debt Service Funds’ financial statements.

Seminar 4-ACC431B_EXAM2_new_PROB_OL.docx 21 KB

Solution: #6148

solution correct answers

MULTI-FUND PROBLEM You are a Hometown accoutant. The Capital Project Fund has just been created to account for resources received and expended for the construction of a new Health Center. Funding for the Health Center is being provided by a $5,000,000 General Obligation Bond sale, a direct transfer from the General Fund, and a Federal Grant. The grant terms provide that the Federal Government will pay only up to 20% of all project expenditures incurred; unused funds must be returned at the completion of the project. Required Elements (total 50 points) : A) (31pts) Journalize the requested transactions for the a. Capital Project Fund b. Debt Service Fund c. General Fund B) (9pts) Prepare closing entries for the Capital Projects Fund. C) (10pts) Provide the missing values for the Capital Projects and Debt Service Funds’ financial statements. Hometown’s Council has adopted the following project budget. $ 3,000,000 General Fund Operating Transfer 5,000,000 General Obligation Bonds 2,000,000 Estimated Federal Grant 10,000,000 Appropriations 1. (3 pts) Record The adoption of the Capital Projects Fund budget. FUND Account Name Debit($) Credit($) Capital project Federal grant 5,000000 Debt service Capital project fund 2000000 General General fund operating 3000000 Appropriation 10,000000 2. (2 pts) Record the signing of the project contracts for all planned appropriations. FUND Acco...