The town of Kaley recently completed construction of a recreational facility which was accounted for in a

Question:

The town of Kaley recently completed construction of a recreational facility which was accounted for in a capital projects fund. Bonds were issued at the onset of the project to finance construction. Legal constraints prevented use of the $800,000 premium on the bonds toward construction costs. The premium has not yet been transferred to the debt service fund. Temporary investments of bond proceeds yielded a 3% return, or $2,424,000. Kaley awarded the construction contract for the facility to the lowest bidder. The contract called for a 15% retainage. Kaley's books show $11,550,000 due the contractor pending final inspection. All other amounts due the contractor have been remitted. Assume interest on temporary investments remains in the capital projects fund.
Required
a. What was the of the bonds issued?
b. What was the amount of the contract awarded?
c. What was the original authorization for the project?
d. What is the total fund balance of the capital projects fund after closing entries? Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...