Chapter 5 - 5-2. 1. 2. 3. 4. 5. b. d. c. a c. 6. 7. 8. 9....

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Unformatted text preview: 5-2. 1. 2. 3. 4. 5. b. d. c. a c. 6. 7. 8. 9. 10. a. c. d. a. b. 5-10. a. FALTS CITY STREET IMPROVEMENT FUND Debits 1. Credits CASH 100,000 OTHER FINANCING SOURCES—PROCEEDS OF BOND ANTICIPATION NOTES 2. 100,000 DUE FROM FEDERAL GOVERNMENT 750,000 REVENUES 750,000 Note: the $750,000 to be received the following year is a time requirement and would not be accrued. 3. ENCUMBRANCES 2,700,000 RESERVE FOR ENCUMBRANCES 4. CONSTRUCTION EXPENDITURES 2,700,000 60,000 DUE TO OTHER FUNDS 5. CONSTRUCTION EXPENDITURES 60,000 69,000 CASH 6. 69,000 CONSTRUCTION EXPENDITURES 18,500 VOUCHERS PAYABLE 7. 18,500 RESERVE FOR ENCUMBRANCES 1,000,000 CONSTRUCTION EXPENDITURES 1,000,000 ENCUMBRANCES 1,000,000 CONTRACTS PAYABLE 1,000,000 Ch. 5, Solutions, 5-10 (Cont’d) Debits 8. Credits CASH 3,250,000 DUE FROM FEDERAL GOVERNMENT 750,000 OTHER FINANCING SOURCES— PROCEEDS OF BONDS 9. 2,500,000 OTHER FINANCING USES—REPAYMENT OF BANs INTEREST EXPENDITURES (NOTE A) CASH 100,000 3,000 103,000 (BANs = BOND ANTICIPATION NOTES) NOTE A: Interest due is calculated as follows: $100,000 x .06 x 180/360 = $3,000; interest is not capitalized for general capital assets. 10. CONTRACTS PAYABLE 1,000,000 CONTRACTS PAYABLE—RETAINED PERCENTAGE CASH 50,000 950,000 11. INVESTMENTS CASH 1,800,000 1,800,000 Ch. 5, Solutions, 5-10 (Cont’d) Debits Credits 12. OTHER FINANCING SOURCES— PROCEEDS OF BONDS 2,500,000 OTHER FINANCING SOURCES— PROCEEDS OF BANs REVENUES 100,000 750,000 FUND BALANCE ENCUMBRANCES 399,500 1,700,000 OTHER FINANCING USES—REPAYMENT OF BANs CONSTRUCTION EXPENDITURES INTEREST EXPENDITURES 100,000 1,147,500 3,000 ...
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Chapter 5 - 5-2. 1. 2. 3. 4. 5. b. d. c. a c. 6. 7. 8. 9....

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