Problem - Chesterfield County had the following transactions.
a. A budget is passed for all ongoing activities. Revenue is anticipated to be $1,029,000 with approved spending of $630,000 and operating transfers out of $324,000.
b. A contract is signed with a construction company to build a new central office building for the government at a cost of $6.2 million. A budget for this project has previously been recorded.
c. Bonds are sold for $6.2 million (face value) to finance construction of the new office building.
d. The new building is completed. An invoice for $6.2 million is received and paid.
e. Previously unrestricted cash of $1.15 million is set aside to begin paying the bonds issued in (c).
f. A portion of the bonds comes due and $1.15 million is paid. Of this total, $155,000 represents interest. The interest had not been previously accrued.
g. Citizens' property tax levies are assessed. Total billing for this tax is $765,000. On this date, the assessment is a legally enforceable claim according to the laws of this state. The money to be received is designated for the current period and 90% is assumed to be collectible in this period with receipt of an additional 6% during subsequent periods but in time to be available to pay current period claims. The remainder is expected to be uncollectible.
h. Cash of $173,000 is received from a toll road. This money is restricted for highway maintenance.
i. The county received investments valued at $345,000 as a donation from a grateful citizen. Income from these investments must be used to beautify local parks.
Required -
Prepare the entries first for fund financial statements and then for government-wide financial statements.
Record encumbrances outstanding- Capital Projects Fund.
Record sale of bonds- Capital Projects Fund.
Record entry to ramove encumbrance- Capital Projects Find.
Record invoice received for building constructed- Capital Projects fund.
Record invoice received for building constructed- Capital Projects Fund.
Record amount set aside to pay off bonds- General Fund.
Record transfer in into debt service fund- Debt Service Fund.
Record payoff of bound- debt service found.
Record property taxes collectible- General Fund.
Record cash received from toll road-special revenue found.
Record donations receiced- Permanent Fund.