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Document 2

El poder de la disciplina

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Karen Lawriee
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13 views1 page

Document 2

El poder de la disciplina

Uploaded by

Karen Lawriee
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Capital Project Handout

During fiscal year 19x8, the voters of the City of Ashland approved the construction and
equipping of a recreation center to be financed by tax-supported bonds in the amount of
$5,000,000. During 19x8, the following events and transactions occurred:

1. Preliminary planning and engineering expenses were incurred in the amount of $125,000.
No money was immediately available for paying these costs (credit Vouchers Payable).
2. Supplies to be used by the city's own working force in connection with the project were
ordered in the amount of $50,000.
3. A contract was let under competitive bids for a major segment of the construction project
in the amount of $4,000,000.
4. All the supplies referred to in item 2 were received at a net cost of $50,500. This amount
was approved for payment.
5. An interfund invoice (not encumbered) was received from the Street Fund for work done
on the project in the amount of $60,000. The invoice was approved for payment.
6. An invoice for $2,100,000 was received from a contractor for portion of work that had
been completed under the general contract.
7. The bond issue was sold at par plus accrued interest (the accrued interest was deposited
in the fund which will service the bonded debts.
8. The amount due the Street Fund was paid.
9. The contractor's bill, less a 5 percent retention, was vouchered for payment.
10. All vouchers payable, except $1,300 (about which there was some controversy),
were paid.
11. Cash in the amount of $2,500,000 was invested in short-term marketable securities.

Required
12. Fiscal year-end closing entries were prepared.
a. Prepare journal entries to record the above information in the general ledger accounts
of the Recreation Construction Fund (you may omit subsidiary ledger accounts.)
b. Prepare a City of Ashland Recreation Center Construction Fund Balance Sheet for the
year ended December 31, 19x8.
c. Prepare a Recreation Center Construction Fund Statement of Revenues, Expenditures,
and Changes in Fund Balance for the year ended December 31, 19x8.

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