Excel-Based Problems 5-12. Jefferson County established a capital project fund in 2019 to build low- income housing with the transfer of $100,000 from the General Fund. A portion of that was expended on engineering studies in 2019. The following transactions occurred during 2020: Capital Project Fund Trial Balance: December 31, 2019 Cash Fund Balance Debits Credits $72,000 $72,000 1. April 1, 2020, 4 percent bonds with a face value of $800,000 were issued in the amount of $817,000. The bond premium was transferred to the debt service fund. 2. The County received notice that it had met eligibility requirements for a federal government grant intended to support the capital project in the amount of $265,000. The grant (cash) will be received when the project is completed in February 2021. 3. The County issued a contract for the construction in the amount of $1,030,000. 4. The contractor periodically bills the County for construction completed to date. During the year, bills totaling $680,000 were received. By year-end. a total of $605,000 had been paid. Jefferson County established a debt service fund to make interest and princi- pal payments on the bonds issued in item 1 above. Bond payments are made on October 1 and April 1 of each year. Interest is based on an annual rate of 4 percent. A principal payment of $27,000 is due in 2020. The following transactions occurred during 2020: 5. The bond premium was received by the debt service fund through transfer from the capital project fund. 142 Chapter 5 6. September 30, $43,000 was transferred from the General Fund for the October 1 bond payment. 7. The first debt service payment was made on October 1, 2020. The Elwood Family Reading Enrichment Fund was established in December 2019, funded by a bequest with the legal restriction that only earnings, and not principal, can be used for the purchase of books for the James K. Polk Library in Jefferson County. The principal amount that must be maintained is $500,000. The following transactions occurred during 2020: Permanent Fund Trial Balance: December 31, 2019 Debits Credits Receivable from Grantor $500,000 Nonspendable Fund Balance- Library Purchases $500,000 8. The Elwood family pledge of $500,000 was received in donated corporate bonds with a fair value of $370,000 and the balance in cash. 9. $130,000 was invested in U.S. government securities. 10. Interest in the amount of $16,500 was received in cash during the year. 11. During the year, books totaling $11,500 were ordered for the library. 12. During the year, the library reported receiving books with an invoice amount totaling $11.500; $10,700 of the amounts due for book purchases had been paid by year-end. 13. An additional $700 of interest had accrued on the investments at December 31 and will be received in January of next year. 14. The corporate bonds had a market value of $372,500 and the U.S. securi- ties had a market value of $129,800 as of December 31. Required: Using the Excel template provided (a separate tab is provided for each of the requirements): a. Prepare journal entries recording the events 1 to 14 for the capital proj- ects, debt service, and permanent funds. b. Post the journal entries to T-accounts. c. Prepare closing entries. d. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the Governmental Funds (the General Fund financial statements have already been prepared). e. Prepare a Balance Sheet for the Governmental Funds, assuming that unexpended spendable resources in the capital projects and permanen funds are classified as restricted and unexpended spendable resources in the debt service fund are classified as assigned. Account Title Account Tide Jefferson County Capital Project Fund Journal Entries December 31, 2017 Jefferson County Datt Service Fund Journal Entre December 31, 2017 Debits Credits Debita Credits Jefferson County Parmanant Fund (Elwood Family Reading Enrichment) Jo Account Title December 31, 2017 Debits Credits FERSON COUNTY General ledger CAPITAL PROJECTS FUND GENERAL LEDGER CASH bb 68,000 h 68,000 DUE FROM OTHER GOVERNMENTS CONTRACTS PAYABLE FUND BALANCE 68,000 b 68,000 INTERGOVERNMENTAL REVENUES CAPITAL EXPENDITURES OTHER FINANCING USES TRANSFERS OUT OTHER FINANCING SOURCES PROCEEDS OF BONDS OTHER FINANCING SOURCES PREMIUM ON BONDS Total debit balances Total credit balances DEBT SERVICE FUND GENERAL LEDGER CASH 68,000 68,000 FUND BALANCE BUDGETARY FUND BALANCE RESERVE FOR ENCUMBRANCES OTHER FINANCING SOURCES TRANSFERS IN EXPENDITURES BOND PRINCIPAL EXPENDITURES BOND INTEREST ENCUMBRANCES Total debit balances Total credit balances OTHER FINANCING SOURCES TRANSFERS IN EXPENDITURES BOND PRINCIPAL EXPENDITURES BOND INTEREST PERMANENT FUND-ELWOOD FAMILY BOOK FUND GENERAL LEDGER CASH RECEIVABLE FROM GRANTOR 500,000 INVESTMENTS IN CORPORATE BONDS 500,000 INTEREST RECEIVABLE ACCOUNTS PAYABLE FUND BALANCE REVENUES INVESTMENT INCOME INTEREST REVENUES INVESTMENT INCOME NET INCREASE IN FAIR VALUE OF INVESTMENTS 500,000 500,000 EXPENDITURES LIBRARY Total debit balances Total credit balances INVESTMENTS IN US GOV'T SECURITIES Total debit balances Total credit balances 500,000 500,000 Jefferson County-Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance For the year ended 12-31-2017 Revenues Property Taxes Investment income: Intergovernmental revenues Interest income Net increase in fair value of investments Total Revenues Capital General Fund Projects Fund Fund Total Debt Service Permanent Governmental Fund Funds $262,075 262,075 262.075 262,075 Expenditures Current General Government Operations 181,560 181.560 Library Capital Outlay 39.900 39,900 Debt Service Principal Interest Total Expenditures Excess (Deficiency) of Revenues Over Expenditure 221,460 221,460 40,615 40,615 Other financing sources (uses) Proceeds of bonds Premium on bonds Transferin Transfers out (43,000) total other financing sources (uses)) (43,000) (41,000) (43,000) Net Change in Fund Balance (2.385) (2.385) Fund Balance, January 1 156,758 156,758 Fund Balance, December 31 $ 154,373 S 154373 areas shaded in blue are not a a requirement of this exercise but are assumed to provide a complete financial statement Jefferson County - Governmental Funds Balance Sheet as of 12/31/2017 General Fund Capital Projects Fund Total Fund Fund Debt Service Permanent Governmental Funds areas shaded in blue are not a $ 128,148 S 128,148 a requirement of this exercise but are assumed to provide a complete financial statement 51,325 51.325 Cash Assets Investment in corporate bonds Investment in US securities Taxes Receivable-net Due from other govemments Accrued interest receivable Supplies Inventory Total Assets Liabilities, Deferred Inflows and Fund Balances 350 350 $ 179,823 S $ 179,823 Liabilities Accounts Payable 2,000 2,000 Wages Payable 850 850 Contracts payable Total Liabilities 2,850 2,850 Deferred Inflows of Resources Property Taxes 22,600 22.600 Fund Balances Nonspendable Inventories 350 350 Permanent Fund principal Restricted for low income housing projects Assigned General Government operations 800 800 Debt Service Library purchases Unassigned 153.223 153,223 Total Fund Balances 154,373 154,373 Total Liabilities and Fund Balances $ 179,823 S S 179,823