Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / Problem P7-2 b (General Ledger Entries Statements The following transactions took place in...

Problem P7-2 b (General Ledger Entries Statements The following transactions took place in the town of Burchette during 20X3 1 A bond issue of $12000000 was authorized for the construction

Problem P7-2 (b) (General Ledger Entries; Statements)

The following transactions took place in the town of Burchette during 20X3:

1. A bond issue of $12,000,000 was authorized for the construction of a library, and the estimated bond issue proceeds and related appropriations were recorded in the General Ledger accounts of a new Capital Projects Fund.

2. The bonds were sold at a premium of $90,000.

3. The cost of issuing the bonds, $80,000, was paid.

4. An order was placed for materials estimated to cost $6,500,000.

5. Salaries and wages of $500,000 were paid.

6. The premium, net of bond issuance costs, was transferred to a Debt Service Fund.

The following transactions took place during 20X4:

7. The materials were received; the actual cost was $6,585,000

8. Salaries and wages of $4,010,000 were paid.

9. All outstanding bills were paid.

10. The project was completed. The accounts were closed, and the remaining balance was transferred to a Debt Service Fund.

Required: b. Prepare a Capital projects Fund balance sheet as of December 31st, 20x3.

Aug 11 2020 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions