The citizens of Spencer County approve the issuance of $2,000,000 in 6 percent genneral obligtions bonds to finance the contruction of a courthouse annex. A capital projects fund was established for that pupose. The precolisning trial balance of the courthouse annex capital project fund follows: Debits: Cash $400,000; due from state government $75,000; Encumbrances $120,000; Expenditures - Capitals $2,160,000; OFU: Transfer Out $25,000 Credit: Contract Payable $250,000; Intergivernmental Grant $385,000; OFS: Premium on bonds $25,00; OFS: proceeds sale of Bonds $2,000,000; Budgetary fund Balamce- Reserve for encumbrance $120,000 Required: a. Prepare any closing entries neccessary at year end. b. Prepare a statement of Revenue, Expenditures, and Changes in Fund Balance for the courthouse annex capital fund project. c. Prepare a Balance Sheet for the courthouse annex capital project fund, assuming all unexpendedresources are restricted to construction of the courthouse annex.
The citizens of Spencer County approve the issuance of $2,000,000 in 6 percent genneral obligtions bonds to finance the contruction of a courthouse annex. A capital projects fund was established for that pupose. The precolisning
Debits: Cash $400,000; due from state government $75,000; Encumbrances $120,000; Expenditures - Capitals $2,160,000; OFU: Transfer Out $25,000
Credit: Contract Payable $250,000; Intergivernmental Grant $385,000; OFS: Premium on bonds $25,00; OFS: proceeds sale of Bonds $2,000,000; Budgetary fund Balamce- Reserve for encumbrance $120,000
Required:
a. Prepare any closing entries neccessary at year end.
b. Prepare a statement of Revenue, Expenditures, and Changes in Fund Balance for the courthouse annex capital fund project.
c. Prepare a Balance Sheet for the courthouse annex capital project fund, assuming all unexpendedresources are restricted to construction of the courthouse annex.
The Statement of Revenue, Expenditures, and Changes in Fund Balance is the income statement of the government funds that is used to track the flow of resources.
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