On June 20, 2018 the City of Collinstown issued $3,000,000 of bonds at par to be used in the construction of a new city hall. The City also received a $100,000 state grant in 2018 to help cover costs associated with the building’s fire safety systems. The project was completed in 2019 and all amounts owed were paid. Other data for the City Hall Construction Fund include: 

Construction Expenditures 2018 1,000,000 

Investments 12-31-18 1,500,000 

Contracts Payable – Retainage 12-31-18 100,000 

Encumbrances Outstanding 12-31-18 1,800,000 

Fund Balance - Restricted 12-31-18 2,100,000 

Construction Expenditures 2019 $2,060,000 

Revenues (investment income) 2019 20,000 

REQUIRED: 

1. Prepare the journal entry needed on the Governmental Activities ledger upon completion of the project in 2019. 

2. Prepare, in good form, the Statement of Revenues, Expenditures and Changes in Fund Equity for the City Hall Construction Fund for 2019.

Answer rating: 100% (QA)

The detailed answer for the above question is provided below 1 Journal Entry Debit Construction Expe... View the full answer