In 2017, Riverside began work on an outdoor amphitheater and concession stand at the city's park. It

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In 2017, Riverside began work on an outdoor amphitheater and concession stand at the city's park. It is to be financed by a $3,500,000 bond issue and supplemented by a $500,000 General Fund transfer. The following transactions occurred in 2017:
1. The General Fund transferred $500,000 to the Park Building Capital Projects Fund.
2. A contract was signed with Restin Construction Company for the major part of the project on a bid of $2,700,000.
3. Preliminary planning and engineering costs of $69,000 were vouchered for the Great Pacific Engineering Company. (This cost had not been encumbered.)
4. A payable was recorded for an $18,500 billing from the Water and Sewer enterprise fund for the cost of extending water pipes to the new concession stand.
5. An invoice in the amount of $1,000,000 was received from Restin for progress to date on the project.
6. The $3,500,000 bonds were issued at par.
7. The amount billed by the contractor (see Transaction 5) less 5 percent retain age was paid.
8. Temporary investments were purchased at a cost of $1,800,000.
9. Closing entries were prepared as of December 31, 2017. Assume that $2,500,000 of the encumbrances outstanding will be paid from the bond proceeds and are therefore considered restricted resources.
Required
a. Prepare journal entries to record the preceding information in the general ledger accounts for the Park Building Capital Projects Fund. (You may ignore the entries that would also be required in the governmental activities general journal at the government-wide level.)
b. Prepare a balance sheet for the Park Building Capital Projects Fund as of December 31, 2017.
c. Prepare a statement of revenues, expenditures, and changes in fund balances for the period.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Accounting for Governmental and Nonprofit Entities

ISBN: 978-0078025822

17th edition

Authors: Jacqueline Reck, Suzanne Lowensohn, Earl Wilson

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