Question

Chesterfield County had the following transactions.

1. A budget is passed for all ongoing activities. Revenue is anticipated to be $1,026,750 with approved spending of $638,000 and operating transfers out of $335,000.
2. A contract is signed with a construction company to build a new central office building for the government at a cost of $8,500,000 . A budget for this project has previously been recorded.
3. Bonds are sold for $8,500,000 (face value) to finance construction of the new office building.
4. The new building is completed. An invoice for $8,500,000 is received and paid.
5. Previously unrestricted cash of $1,100,000 is set aside to begin paying the bonds issued in (c).
6. A portion of the bonds comes due and $1,100,000 is paid. Of this total, $225,000 represents interest. The interest had not been previously accrued.
7. Citizens' property tax levies are assessed. Total billing for this tax is $935,000. On this date, the assessment is a legally enforceable claim according to the laws of this state. The money to be received is designated for the current period and 90 percent is assumed to be collectible in this period with receipt of an additional 6 percent during subsequent periods but in time to be available to pay current period claims. The remainder is expected to be uncollectible.
8. Cash of $217,000 is received from a toll road. This money is restricted for highway maintenance.
9. The county received investments valued at $382,000 as a donation from a grateful citizen. Income from these investments must be used to beautify local parks.

Prepare the entries for fund financial statements. (Select the appropriate fund for each situation when required. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Transaction Fund/Activity General Journal Debit Credit a. A budget is passed for all ongoing activities. Revenue is anticipated to be $1,026,750 with approved spending of $638,000 and operating transfers out of $335,000. a. Record the budget for the year. Estimated revenues Appropriations Estimated other financing uses - operating transfers Budgetary fund balance b. A contract is signed with a construction company to build a new central office building for the government at a cost of $8,500,000. A budget for this project has previously been recorded. b. Record encumbrances outstanding. c. Bonds are sold for $8,500,000 (face value) to finance construction of the new office building. c. Record sale of bonds. d. The new building is completed. An invoice for $8,500,000 is received and paid. d. Record entry to remove encumbrance. Record invoice received for building constructed. Record invoice received for building constructed. e. Previously unrestricted cash of $1,100,000 is set aside to begin paying the bonds issued in (c). e. Record amount set aside to pay off bonds. Record transfer in into debt service fund. f. A portion of the bonds comes due and $1,100,000 is paid. Of this total, $225,000 represents interest. The interest had not been previously accrued. f. Record payoff of bonds. g. Citizens' property tax levies are assessed. Total billing for this tax is $935,000. On this date, the assessment is a legally enforceable claim according to the laws of this state. The money to be received is designated for the current period and 90 percent is assumed to be collectible in this period with receipt of an additional 6 percent during subsequent periods but in time to be available to pay current period claims. The remainder is expected to be uncollectible. g. Record property taxes collectible. h. Cash of $217,000 is received from a toll road. This money is restricted for highway maintenance. h. Record cash received from toll road. i. The county received investments valued at $382,000 as a donation from a grateful citizen. Income from these investments must be used to beautify local parks. i. Record donations received.

Answer 1

Dear Student , Below answer relates to stage wise JE in relates to General Fund , Deb servicing fund as well as Government Fund . Couple of cases - No Journal Entry require in case of Government Fund - mentioned in the Question  

Please check line by line ,Any issue , please drop me message , I will get back to you .

Thank You!!

	Chesterfield County had the following transaction
Answer a	A budget is passed for all ongoing project
	Revenue is anticipated $ 1026750
	With approved spending $638000
	oerating Transfer$ 335000
	We need to account above budget entry relates to
	General Fund
	Details	Debit($)	Credit($)
	Revenue ( Estimate)	10,26,750
	Other finance user ( Estimate)- Apportioned		6,38,000
	Operating Transfer		3,35,000
	Balance Fund- Budgeted		53,750
	Under Government Fund - No entry need to account relates to Budget
Answer b	A contract is signed with a construction company to build a new central
	office Building for the Government at a cost of $ 8500000
	Record Encumberance Outstanding
	Details	Debit($)	Credit($)
	Encumberance	85,00,000
	Fund Balance reserved for Encumberance		85,00,000
	Under Government Fund - No entry required
Answer c	Bonds are sold $ 8500000( face value ) to finance construction of new office building
	Capital protection fund - General Fund
	Details	Debit($)	Credit($)
	Cash	85,00,000
	Other financing source - Bonds Proceeds		85,00,000
	Under Government Fund -
	Details	Debit($)	Credit($)
	Cash	85,00,000
	Bonds Payable		85,00,000
Answer d	The new building is completed . An Invoice for $ 8500000 is received and paid
	General Fund
	Details	Debit($)	Credit($)
	Reversal of Fynd balance - Reserved Encumberance ) As above)
	Fund Balance reserved for Encumberance	85,00,000
	Encumberance		85,00,000
	Details	Debit($)	Credit($)
	Expenditure	85,00,000
	Creditors		85,00,000
	Details	Debit($)	Credit($)
	Creditors	85,00,000
	Cash		85,00,000
	Under Government Fund -
	Details	Debit($)	Credit($)
	Building	85,00,000
	Creditors		85,00,000
	Creditors	Debit($)
	Cash		Debit($)
Answer e	Previously unrestricted cash $ 1100000 is set aside to begin payable the bond issued ( as above)
	Debt Service Fund
	Details	Debit($)	Credit($)
	Cash	1100000
	Other Financing users - Transfer In		11,00,000
	Under Government Fund -
	No Journal entry - No fund
Answer F	Payoff Bind with Interest $ 225000
	Details- Debt Servicing Fund	Debit($)	Credit($)
	Expenditure ( principal Amount )	8,75,000
	Expenditure ( Interest Amount	225000
	Cash		11,00,000
	Under Government Fund -
	Bond Payable	8,75,000
	Interest Expenses	225000
	Cash		11,00,000

Answer G	Property tax Entry to account
	As per Question , Total billing for Tax $ 935000
	As per Question , 90% is assumed to be collectable in this period of receipt alomg with additional 6%
	Details- General Fund	Debit($)	Credit($)
	Property Tax Receivable 96% of $935000	8,97,600
	Allowance for uncollectable Tax	37,400
	Property Tax Revenue(		9,35,000
	Details- Government Fund	Debit($)	Credit($)
	Property Tax Receivable 96% of $935000	8,97,600
	Allowance for uncollectable Tax	37,400
	Property Tax Revenue(		9,35,000
Answer h	cash of $ 217000 is received from Toll Road. This money is restricetd for highway maintenance
	Fund Specific	Debit($)	Credit($)
	cash	217000
	Revenue from Toll ( Specific for Highway)		2,17,000
	Government Fund	Debit($)	Credit($)
	cash	217000
	Revenue from Toll ( Specific for Highway)		2,17,000
Answer I	The country received Investment valued $382000 as a donation
	from a grateful citizen. This money should utilise for Beautification of Park
	Fund Specific - Special - Donation	Debit($)	Credit($)
	Investment	382000
	Deferred Revenue		3,82,000
	( assume we are not recogniting Revenue in Current Period)
	Government Fund	Debit($)	Credit($)
	Investment	382000
	Deferred Revenue		3,82,000
	( assume we are not recogniting Revenue in Current Period)