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ch05web - CHAPTER 5: ACCOUNTING FOR GENERAL CAPITAL ASSETS...

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Unformatted text preview: CHAPTER 5: ACCOUNTING FOR GENERAL CAPITAL ASSETS AND CAPITAL PROJECTS Solutions to Exercises and Problems 5-2. 1. a . 6. c . 2. d . 7. d . 3. c . 8. c. 4. a 9. a . 5. b . 10. c . 5-9. a . TOWN OF DEXTER RECREATION CENTER CONSTRUCTION FUND GENERAL JOURNAL Debits Credits 1. Recreation Center Construction Fund: CONSTRUCTION EXPENDITURES 60,000 VOUCHERS PAYABLE 60,000 Governmental Activities: CONSTRUCTION WORK IN PROGRESS 60,000 VOUCHERS PAYABLE 60,000 Recreation Center Construction Fund: 2. ENCUMBRANCES 30,600 RESERVE FOR ENCUMBRANCES 30,600 Governmental Activities: NO ENTRY REQUIRED Recreation Center Construction Fund: 3. ENCUMBRANCES 2,500,000 RESERVE FOR ENCUMBRANCES 2,500,000 Governmental Activities: NO ENTRY REQUIRED 5-1 4. Recreation Center Construction Fund: RESERVE FOR ENCUMBRANCES 30,600 CONSTRUCTION EXPENDITURES 30,500 ENCUMBRANCES 30,600 VOUCHERS PAYABLE 30,500 Governmental Activities: CONSTRUCTION WORK IN PROGRESS 30,500 VOUCHERS PAYABLE 30,500 5. Recreation Center Construction Fund: CONSTRUCTION EXPENDITURES 40,000 DUE TO WATER UTILITY FUND 40,000 Governmental Activities: CONSTRUCTION WORK IN PROGRESS 40,000 INTERNAL BALANCES 40,000 6. Recreation Center Construction Fund: RESERVE FOR ENCUMBRANCES 1,600,000 CONSTRUCTION EXPENDITURES 1,600,000 ENCUMBRANCES 1,600,000 CONTRACTS PAYABLE 1,600,000 Governmental Activities: CONSTRUCTION WORK IN PROGRESS 1,600,000 CONTRACTS PAYABLE 1,600,000 7. Recreation Center Construction Fund: CASH 3,000,000 OTHER FINANCING SOURCES PROCEEDS OF BONDS 3,000,000 Governmental Activities: CASH 3,025,000 BONDS PAYABLE 3,000,000 ACCRUED INTEREST PAYABLE 25,000 5-2 Debits Credits 8. Recreation Center Construction Fund: DUE TO WATER UTILITY FUND 40,000 CASH 40,000 Governmental Activities: INTERNAL BALANCES 40,000 CASH 40,000 9. Recreation Center Construction Fund and Governmental Activities: CONTRACTS PAYABLE 1,600,000 CONTRACTS PAYABLERETAINED PERCENTAGE 64,000 VOUCHERS PAYABLE 1,536,000 10. Recreation Center Construction Fund and Governmental Activities: VOUCHERS PAYABLE 1,625,200 CASH 1,625,200 (COMPUTATION: $60,000 + $30,500 + $1,536,000 - $1,300 = $1,625,200)...
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This note was uploaded on 04/08/2008 for the course AC 456 taught by Professor Parsons during the Spring '08 term at Alabama.

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ch05web - CHAPTER 5: ACCOUNTING FOR GENERAL CAPITAL ASSETS...

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