Business, 23.03.2021 03:00 lalaokawami0912

The City of Cowling decides to construct a new library, which it estimates will cost $8.5 million. The City will finance the library with a state construction grant of $3 million; a general obligation bond issuance of $5 million; and a transfer from the General Fund of $500,000. Prepare journal entries to record the following transactions in the Capital Projects Fund. No budgetary entries other than encumbrances should be recorded.

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Answer from: Yskdl

a. Dr Cash 500,000

Cr Transfer in from General Fund 500,000

b. Dr Cash 5,000,000

Cr Other financing source—long-term debt issued 5,000,000

c. Dr Encumbrances—capital project 8,300,000 Cr Budgetary fund balance reserved for encumbrances 8,300,000

d. Dr Cash 3,000,000

Cr Revenues—construction grant 3,000,000

e. Dr Budgetary fund balance reserved for encumbrances 8,300,000

Cr Encumbrances—capital project 8,300,000

Dr Expenditures—construction costs 8,400,000 Cr Retainage payable 840,000

Cr Construction contracts payable 7,560,000

f. Dr Construction contracts payable 7,560,000 Cr Cash 7,560,000

g. Dr Retainage payable 840,000

Cr Cash 840,000

h. Dr Transfer out to Debt Service Fund 100,000

Cr Cash 100,000

Explanation:

Preparation of the journal entries to record the Capital Projects Fund

a. Dr Cash 500,000

Cr Transfer in from General Fund 500,000

b. Dr Cash 5,000,000

Cr Other financing source—long-term debt issued 5,000,000

c. Dr Encumbrances—capital project 8,300,000 Cr Budgetary fund balance reserved for encumbrances 8,300,000

d. Dr Cash 3,000,000

Cr Revenues—construction grant 3,000,000

e. Dr Budgetary fund balance reserved for encumbrances 8,300,000

Cr Encumbrances—capital project 8,300,000

Dr Expenditures—construction costs 8,400,000 Cr Retainage payable 840,000

(10%*8,400,000)

Cr Construction contracts payable 7,560,000

(8,400,000-840,000)

f. Dr Construction contracts payable 7,560,000 Cr Cash 7,560,000

(8,400,000-840,000)

g. Dr Retainage payable 840,000

Cr Cash 840,000

(10%*8,400,000)

h. Dr Transfer out to Debt Service Fund 100,000

Cr Cash 100,000

Answer from: Quest

Some disadvantages to leasing a car is that you are counting on someone to give you money every week or month depending on what you decided and if they don't have all of it well what if you needed that money now you as well have to pay not in full. a disadvantages to purchasing a new vehicle is if it is used then not all the time will absolutely everything work. its almost like a trail and era. although if it is a new car they will try to though all these specials and deals at you in your lease and it can be very overwhelming if you are not use to it.

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The City of Cowling decides to construct a new library, which it estimates will cost $8.5 million. T...