95%(110)105 out of 110 people found this document helpful
This preview shows page 2 - 3 out of 4 pages.
The second factor is to determine if the trust “principle is to be maintained or expended” (Copley, 2015). 5-4The citizens of Spencer County approved the issuance of $2,000,000 in 6 percent general obligation bonds to finance the construction of a courthouse annex. A capital projects fund was established for that purpose. The preclosing trial balance of the courthouse annex capital project fund follows:Trial Balance-December 31, 2015 Debits CreditsCash $900,000Contract payable $550,000Due from state government 200,000Encumbrances 85,000Expenditures-capital 1,850,000Intergovernmental grant 400,000OFS: premium on bonds 45,000OFS: proceeds sale of bonds 2,000,000Budgetary fund balance-reserve for encumbrances 85,000Transfer out 45,000$3,080,000 $3,080,000a. Prepare any closing entries necessary at year-endIntergovernmental grant 400,000OFS: premium on bonds 45,000OFS: proceeds sale of bonds 2,000,000Expenditures-capital 1,850,000Other financing uses: Transfer out 45,000Fund Balance 550,000Budgetary fund balance- 85,000Encumbrances 85,000b. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the courthouse annex capital project fund.Spencer CountyStatement of Revenues, Expenditures, and Changes in Fund BalancesGovernment FundsFor the Year Ended December 31, 2015Courthouse Renovation Total Gov. FundsRevenuesIntergovernmental grant $ 400,000 $400,000Total revenues 400,000 400,000ExpendituresExpenditures-capital 1,850,0001,850,000Total expenditures 1,850,000 1,850,000