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multi-fund-problem

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solution


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Question;You are a Hometown;accountant. The Capital Project Fund has;just been created to account for resources received and expended for the;construction of a new Health Center.;Funding for the Health Center is being provided by a $5,000,000 General;Obligation Bond sale, a direct transfer from the General Fund, and a Federal;Grant. The grant terms provide that the;Federal Government will pay only up to 20% of all project expenditures;incurred, unused funds must be returned at the completion of the project.;Required Elements (total 50;points);(31pts) Journalize the;requested transactions for theCapital Project FundDebt Service FundGeneral Fund(9pts) Prepare closing entries;for the Capital Projects Fund.(10pts) Provide the missing values;for the Capital Projects and Debt Service Funds? financial statements.Hometown?s Council has adopted;the following project budget. $ 3,000,000 General Fund Operating Transfer 5,000,000 General;Obligation Bonds 2,000,000 Estimated;Federal Grant 10,000,000 Appropriations;(3 pts) Record The adoption of;the Capital Projects Fund budget.;FUND;Account Name;Debit;Credit;(2;pts) Record the signing of the project contracts for all planned;appropriations.;FUND;Account Name;Debit;Credit;(5 pts) The General Fund;transfered $3,000,000 in cash to Capital Projects Fund. An advance on the Federal grant was received;for the full estimated grant amount.;Record the related journal entry(-ies).;FUND;Account Name;Debit;Credit;(6 pts) $5,100,000 was received;in proceeds on the sale of the $5,000,000 Project Bond. The Debt Service Fund will manage the Bond;Payments. Record the related journal;entry(-ies).;FUND;Account Name;Debit;Credit;(7 pts) Final contracted;construction and architect bills totaling $9,750,000 were approved and;vouchered, less a 5% retention holdback on the construction bills, which will;be paid when the project passes final detail inspection. Record the related journal entry(-ies).;FUND;Account Name;Debit;Credit;(3 pts) The new Health Center;has passed its last detailed inspection and approval has been received to pay;all remaining amounts owed the contractor (payables and retention). Record the journal entry for the payments.;FUND;Account Name;Debit;Credit;(5 pts) You transferred any;unused bond proceeds to the Debt Service Fund and returned unused grant dollars;to the Federal government. Record the;related journal entry(-ies).;FUND;Account Name;Debit;Credit;B. (9 pts) Prepare closing entries for the;Capital Projects Fund.;FUND;Account Name;Debit;Credit;C. (10 pts) Fill in the Financial Statement;Blanks for the Capital Projects and Debt Service Funds.;Hometown;Capital Projects Fund ?;Health Center Construction;Statement of Revenues, Expenditures;and Changes in Fund Balance;For the Year Ended;December 31, 2012;Revenues;Federal Grant Revenue;Expenditures;Capital Outlay;Revenues Over (Under);Expenditures;Other Financing Sources;(Uses);Proceeds of Bonds;Premium on Bonds;Operating Transfers In ? General Fund;Operating Transfers (Out) ? Debt Service;Fund;Total Other Financing Sources;(Uses);Net Change in Fund Balance;Fund Balance, January 1, 2012;Fund Balance, December 31;2012;Hometown;Debt Service Fund ?;Health Center Construction Bonds;Statement of Revenues;Expenditures, and Changes in Fund;Balance;For the Year Ended;December 31, 2012;Revenues;Federal Grant Revenue;Expenditures;Capital Outlay;Revenues Over (Under);Expenditures;Other Financing Sources;(Uses);Proceeds of Bonds;Premium on Bonds;Operating Transfers In ? Capital;Projects Fund;Net Change in Fund Balance;Fund Balance, January 1, 2012;Fund Balance, December 31;2012;The remainder of this page is;intentionally left blank for your use in compuations.

 

Paper#39048 | Written in 18-Jul-2015

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