Question

Plant Fund After the election of a prominent political figure, the principal from a term endowment fund was expendable by Crandall University. The official was elected this year. The fund was re stricted to the construction of a Political Science building annex. The following transactions occurred because of this event:
1. A transfer of $3,000,000 is made from the Endowment Fund (Term) to the Unexpended Plant Fund.
2. Construction is begun on the Political Science annex. Costs of construction during the year amounted to $1,000,000, of which $30,000 remained unpaid at the end of the year.
(The financial controller does not record transfers to the Investment in Plant subgroup until a project has been completed.)
3. By the end of the following year, the annex is completed at an additional cost of $2,100,000. All costs have been paid.
4. The completed building is recorded in the Investment in Plant subgroup.

Required:
Record the journal entries for each transaction and identify the fund or fund subgroup in which each entry is recorded.



$1.99
Sales0
Views31
Comments0
  • CreatedMarch 16, 2015
  • Files Included
Post your question
5000