The following transactions took place in the town of Burchette

The following transactions took place in the town of Burchette during 20X3:

1. A bond issue of $12,000,000 was authorized for the construction of a library, and the estimated bond issue proceeds and related appropriations were recorded in the General Ledger accounts of a new Capital Projects Fund.

2. The bonds were sold at a premium of $90,000.

3. The cost of issuing the bonds, $80,000, was paid.

4. An order was placed for materials estimated to cost $6,500,000.

5. Salaries and wages of $500,000 were paid.

6. The premium, net of bond issuance costs, was transferred to a Debt Service Fund.

The following transactions took place during 20X4:

7. The materials were received; the actual cost was $6,585,000.

8. Salaries and wages of $4,010,000 were paid.

9. All outstanding bills were paid.

10. The project was completed. The accounts were closed, and the remaining balance was transferred to a Debt Service Fund.


Required

a. Prepare all journal entries (budgetary and actual), including closing entries, to record the Capital Projects Fund transactions for 20X3 and 20X4.

b. Prepare a Capital Projects Fund balance sheet as of December 31, 20X3.

c. Prepare a Capital Projects Fund Statement of Revenues, Expenditures, and Changes in Fund Balance for the project, including

(1) The year ended December 31, 20X3,

(2) A separate budgetary combined comparison statement for the years ended December 31, 20X3 and 20X4.


Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...