Question: Plant Fund After the election of a prominent political figure

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.

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

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  • CreatedMarch 16, 2015
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