Crystal City established a capital projects fund to account for the construction of a new bridge. During the year the fund was established, the city issued bonds, signed (and encumbered) $6 million in contracts with various suppliers and contractors, and incurred $4.3 million of construction costs. It temporarily invested a portion of the bond proceeds and earned $20,000 in interest, which was received in cash. The accompanying statement of revenues, expenditures, and changes in fund balance and balance sheet were taken from its year-end ﬁnancial report. Based on the data in the two statements, as well as those provided in the previous paragraph, prepare journal entries to summarize the transactions in which the fund engaged. You should prepare budgetary entries, but need not prepare closingentries.
Answer to relevant QuestionsDurwin County issued $200 million in long-term debt to fund major improvements to the county’s road and transportation systems. The debt is to be serviced from the proceeds of a specially dedicated property tax. The ...Charter City issued $100 million of 6 percent, 20-year general obligation bonds on January 1, 2014. The bonds were sold to yield 6.2 percent and hence were issued at a discount of $2.27 million (i.e., at a price of $97.73 ...Do you think that capital projects funds should be limited to accounting for resources that are externally restricted? What about debt service funds?Why have many government ofﬁcials objected to Statement No. 34’s requirement that infrastructure assets be accounted for similarly to other capital assets?The following summarizes the history of the Sharp City Recreation Center:1. In 1987, the city constructed the building at a cost of $1,500,000. Of this amount, $1,000,000 was ﬁnanced with bonds and the balance from ...
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