This problem has two parts, part a and part b. Answer each part separately using the same information. Do not mix answers to a and b; they are answered separately.Problem a: Using the list of transactions below, provide all necessary journal entries for the Fund statements. You also need to identify which funds are involved in the transaction, such as the Capital projects fund, Debt service fund Special revenue fund, or Permanent fund. Problem b: Using the same list of transactions, provide all necessary journal entries for the Governmental Activities section in the Government-wide statements. Write “no entry” if no entry is needed. Dunellen City, covered in this problem, issues a $10,000,000 bond at face value. The cash is to be used for the construction of a fire station.Previously undesignated cash of $100,000 from the General Fund is set aside to begin paying the bonds issued in item (1).A state cash grant of $300,000 is received that must be spent in the future for updates to parks facilities. The grant proceeds are held until the updating work is started.Cash of $200,000 is transferred from the General Fund for construction of the fire station.Investments valued at $700,000 are received as a donation from a grateful citizen. Income from the investments is to be used for children's programs.Salaries of $75,000 are paid to workers updating the facilities in Main Street Park according to the requirements of the grant received in item 3.The fire station is completed and a check is sent to the primary contractor for $10,200,000. No commitment had previously been recorded for the contract.Nothing has yet been recorded this year regarding scheduled payments on the general obligation bonds. A cash payment of $50,000 is made that consists of $45,000 of interest and $5,000 of principal. The interest had not been previously accrued.

Fund accounting is an accounting that requires limited use of funds. The limitation on the use is…

Answered: Problem a: Using the list of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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This problem has two parts, part a and part b. Answer each part separately using the same information. Do not mix answers to a and b; they are answered separately.

Problem a: Using the list of transactions below, provide all necessary journal entries for the Fund statements. You also need to identify which funds are involved in the transaction, such as the Capital projects fund, Debt service fund Special revenue fund, or Permanent fund.

Problem b: Using the same list of transactions, provide all necessary journal entries for the Governmental Activities section in the Government-wide statements. Write “no entry” if no entry is needed.

Dunellen City, covered in this problem, issues a $10,000,000 bond at face value. The cash is to be used for the construction of a fire station.
Previously undesignated cash of $100,000 from the General Fund is set aside to begin paying the bonds issued in item (1).
A state cash grant of $300,000 is received that must be spent in the future for updates to parks facilities. The grant proceeds are held until the updating work is started.
Cash of $200,000 is transferred from the General Fund for construction of the fire station.
Investments valued at $700,000 are received as a donation from a grateful citizen. Income from the investments is to be used for children's programs.
Salaries of $75,000 are paid to workers updating the facilities in Main Street Park according to the requirements of the grant received in item 3.
The fire station is completed and a check is sent to the primary contractor for $10,200,000. No commitment had previously been recorded for the contract.
Nothing has yet been recorded this year regarding scheduled payments on the general obligation bonds. A cash payment of $50,000 is made that consists of $45,000 of interest and $5,000 of principal. The interest had not been previously accrued.

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