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Travka [436]
2 years ago
12

The State of Connecticut has a fiscal year end of June 30th. The State has authorized the building of a new Fire Station in New

Haven County to begin on July 1, 2020. The State authorized 30 million dollars to build the Fire Station.
The following transactions were recorded in the State of Connecticut’s Capital Project Fund:
1. $3,000,000 was received from the Federal government and was considered “Revenue.”
2. The State of Connecticut’s General Fund transferred $9,000,000 to the Capital Project Fund. [Operating Transfer In]
3. Bonds were issued (at face) by the State of Connecticut for $18,000,000 and the monies were received and recorded in the Capital Project Fund. [Other Financing Sources]
4. The contract for the Fire Station was awarded to the Oceanside Construction Company for $30,000,000. [Remember, contracts are encumbered.]
5. The construction of the Fire Station was certified complete on March 1, 2021, was expenditured and the Oceanside Construction Company was paid.
The books were closed and the financial statements for the Capital Fund of the State of Connecticut were prepared for the fiscal year ended June 30, 2021.
[Assume that this Capital Project Fund had zeros in all accounts on July 1, 2020, the beginning of the fiscal year. You do not have to prepare closing entries.]
Required:
A. Prepare the journal entries for the above 5 transactions (only for the Capital Project Fund.)
B. Prepare a Statement of Revenues and Expenditures for the Capital Project Fund for the fiscal year ended June 30, 2021, in good form.
C. Prepare a Statement of Changes in Fund Balance for the Capital Project Fund as of June 30, 2021, in good form.
Advanced Placement (AP)
1 answer:
lina2011 [118]2 years ago
8 0

Answer:

A

Explanation:

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