Assuming the City of Namtip maintains its books and records in a manner that facilitates the preparation of its governmental fund financial statements, record, in the order presented, all of the transactions below, in good form without explanations, for all funds/nonfunds affected.

Place the number (1 – 10) of the fund/non-fund (on the City of Namtip’s Chart of Accounts) in which the transaction would be recorded and then on the next line start the entry. If no entry is required, write NO ENTRY REQUIRED. Where possible, use a compound entry instead of separate entries. Leave a blank line between each journal entry.

A. The City issued $20 million in 6% general obligation term bonds at 101 to finance the construction of a new City Hall building. Bond issue costs of $25,000 were incurred.

B. The premium was transferred to the Debt Service Fund.

C. Several construction contracts totaling $19 million were signed.

D. By the end of the fiscal year, construction costs of $7.5 million were incurred and the invoices were paid immediately except for a 10% retainage. This phase of the construction had estimated costs of $7 million.

Answer rating: 100% (QA)

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