Sardelli City plans to begin and complete construction of a new library during its fiscal year...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Sardelli City plans to begin and complete construction of a new library during its fiscal year ending December 31, 2014. Record the transactions, identified below, in both the CPF and the GWGA, paying particular attention to the income statement differences as you record each entry. If you are feeling adventurous, you should consider recording any necessary entries in the debt service fund as well. Ⓒ 1. On February 1, 2014, Sardelli City issues general obligation bonds payable for the construction of the library. The bonds which have par value of $5,000,000 are issued at 101 (i.e., there is a 1% premium). Bonds have a stated interest rate of 6%, and interest payment dates are July 1 and January 1. The full amount (par, premium, and accrued interest) are deposited in the CPF, with amounts that are due to the debt service fund being satisfied immediately following the receipt of the bond proceeds. 2. On March 1, 2014, the library special revenue fund transfers $500,000 to the CPF (without the expectation of repayment) to be used for the construction of the new library. 3. On April 1, 2014, Sardelli City signs a contract with Surrock Contractors in the amount of $5,750,000. 4. On May 1, 2014, Sardelli City receives a $300,000 federal grant for use in constructing the library. 5. The library was completed on October 1, 2014, construction of the library was completed at an actual cost of $5,780,000. (The additional $30,000 above the contract amount was approved by both parties, as it involved the upgrade of the HVAC system from what had been specified in the contract.) The full invoice amount was paid to Surrock Contractors. 6. Some time prior to year end, City CFO Jillian Davenport decided to close out the capital projects fund because she wanted to see the nirvana of getting to a trial balance of zeros!!! You should also record the reclassification necessary in the GWGA. Sardelli City plans to begin and complete construction of a new library during its fiscal year ending December 31, 2014. Record the transactions, identified below, in both the CPF and the GWGA, paying particular attention to the income statement differences as you record each entry. If you are feeling adventurous, you should consider recording any necessary entries in the debt service fund as well. Ⓒ 1. On February 1, 2014, Sardelli City issues general obligation bonds payable for the construction of the library. The bonds which have par value of $5,000,000 are issued at 101 (i.e., there is a 1% premium). Bonds have a stated interest rate of 6%, and interest payment dates are July 1 and January 1. The full amount (par, premium, and accrued interest) are deposited in the CPF, with amounts that are due to the debt service fund being satisfied immediately following the receipt of the bond proceeds. 2. On March 1, 2014, the library special revenue fund transfers $500,000 to the CPF (without the expectation of repayment) to be used for the construction of the new library. 3. On April 1, 2014, Sardelli City signs a contract with Surrock Contractors in the amount of $5,750,000. 4. On May 1, 2014, Sardelli City receives a $300,000 federal grant for use in constructing the library. 5. The library was completed on October 1, 2014, construction of the library was completed at an actual cost of $5,780,000. (The additional $30,000 above the contract amount was approved by both parties, as it involved the upgrade of the HVAC system from what had been specified in the contract.) The full invoice amount was paid to Surrock Contractors. 6. Some time prior to year end, City CFO Jillian Davenport decided to close out the capital projects fund because she wanted to see the nirvana of getting to a trial balance of zeros!!! You should also record the reclassification necessary in the GWGA.
Expert Answer:
Answer rating: 100% (QA)
1 CPF Debit General Obligation Bonds Payable 5005000 Credit Cash 5005000 Debit Accrued I... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
Students also viewed these finance questions
-
On the last day of its fiscal year ending December 31, 2011, the Sedgwick & Reams (S&R) Glass Company completed two financing arrangements. The funds provided by these initiatives will allow the...
-
On the last day of its fiscal year ending December 31, 2013, the Sedgwick & Reams (S&R) Glass Company completed two financing arrangements. The funds provided by these initiatives will allow the...
-
On the last day of its fiscal year ending December 31, 2018, the Sedgwick & Reams (S&R) Glass Company completed two financing arrangements. The funds provided by these initiatives will allow the...
-
Elevator Controller The block diagram for an elevator controller for a two-floorelevator follows. The inputs FB1 and FB2 are 1 when someone in the elevatorpresses the first and secondfloor buttons,...
-
Refer to the data given in Exercise 12.28. The MINITAB printout is reproduced here. Regression Analysis: y versus x The regression equation is y = -26.8 + 1.26 x a. What assumptions must be made...
-
Find the domain, x-intercept, and vertical asymptote of the logarithmic function and sketch its graph. 1. g(x) = log7 x 2. f (x) = log x/3
-
What is the difference between null and alternative hypothesis?
-
Simon Products uses both special journals and a general journal as described in this chapter. Simon also posts customers? accounts in the accounts receivable subsidiary ledger. The postings for the...
-
Construct a decision tree for a binary search of these ordered names: 3, 5, 10, 14, 25, 33, 56, 72, 90. What is the height of the tree? (4 +1 marks) What day of the week did/does your birthday fall...
-
After retiring as a physician, Bob Guthrie became an avid downhill skier on the steep slopes of the Utah Rocky Mountains. As an amateur inventor, Bob was always looking for something new. With the...
-
Identify a local health care administrator and schedule an interview with that person. The interview may be face-to-face, by telephone, or e-mail based. This interview will prove to be essential to...
-
How might a digitally enabled service provider adopt the core ideas of the Toyota system to ensure quality of service?
-
Does the learning curve continue downward forever?
-
Explain briefly the responsibilities of an incoming auditor (following a change of auditor) in respect of the opening balances in the current periods financial statements.
-
How might digitisation of service or product delivery enable quality barriers to be overcome?
-
Contrast the functions and forms of inventories. Does every form exist for each function and vice versa, or are some more common?
-
The XYZ Corporation, a manufacturing company, uses accelerated depreciation for tax purposes but straight-line depreciation for financial reporting. As a result, the company's income tax expense...
-
After graduating from college and working a few years at a small technology firm. Preet scored a high-level job in the logistics department at Amex Corporation. Amex sells high-quality electronic...
-
An annual report of Sprint Corporation contained a rather lengthy narrative entitled "Review of Segmental Results of Operation." The narrative noted that short-term notes payable and commercial paper...
-
Shackelford Corporation acquired a patent from its founder, Jim Shackelford, in exchange for 50,000 shares of the company's nopar common stock . On the date of the exchange, the common stock had a...
-
Right Medical introduced a new implant that carries a five-year warranty against manufacturers defects. Based on industry experience with similar product introductions, warranty costs are expected to...
-
Empire Industries forecasts net income this coming year as shown below (in thousands of dollars): Approximately $200,000 of Empires earnings will be needed to make new, positive- NPV investments....
-
What is volumetric charging?
-
What are the key characteristics of the five principal modes of transport?
Study smarter with the SolutionInn App