The City of McNeely sold bonds in the amount of $25,000,000 to finance the construction of a
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Question:
The City of McNeely sold bonds in the amount of $25,000,000 to finance the construction of a public health center. The bonds are serial bonds and were sold at par on July 1, 2017 the first day of a fiscal year. Shortly thereafter a construction contract in the amount of $22,000,000 was signed and the contractor commenced work. By year-end the contractor had been paid in full for all billings to date amounting to $12,000,000.
REQUIRED
JOURNAL ENTRIES
1. Record the cash received on issue of bonds.
2. Record the inception of the construction contract.
3. Record the encumbrances outstanding on account of the construction contract.
4. Record the transfer of the balance in the fund balance account.
Related Book For
Introduction to Governmental and Not for Profit Accounting
ISBN: 978-0132776011
7th edition
Authors: Martin Ives, Terry K. Patton, Suesan R. Patton
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