Question: The following transactions and events occurred in Lanesburg Township during

The following transactions and events occurred in Lanesburg Township during 20X7:
1. The township assembly agreed that a new police and fire department building would be constructed at a cost not to exceed $1,500,000, on land owned by the township.
2. Cash with which to finance the project was received from the following sources:
Transfer from General Fund . . . . . . . . . . . . . $ 100,000
State-Federal grant . . . . . . . . . . . . . . . . . . . . . 500,000
Bank of Lanesburg (long-term note) . . . . . . 900,000
  $1,500,000
The state–federal grant is for one-third of the project cost, not to exceed $500,000, and any unearned balance must be returned to the state.
3. Cash was disbursed for building costs from the Capital Projects Fund as follows:
Construction contract . . . . . . . . . . . . . . . . . . . $1,400,000
Architect fees. . . . . . . . . . . . . . . . . . . . . . . . . . 50,000
Engineering charges . . . . . . . . . . . . . . . . . . . . 20,000
  $1,470,000
4. The unearned portion of the grant was refunded to the state, the remaining cash was transferred to the General Fund, and the Capital Projects Fund was terminated.




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  • CreatedOctober 25, 2014
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