Question

Chesterfield County had the following transactions. a. A budget is passed for all ongoing activities. Revenue is anticipated to be $834,000 with approved spending of $540,000 and operating transfers out of $242,000. b. A contract is signed with a construction company to build a new central office building for the government at a cost of $8 million. A budget for this project has previously been recorded. c. Bonds are sold for $8 million (face value) to finance construction of the new office building. d. The new building is completed. An invoice for $8 million is received and paid. e. Previously unrestricted cash of $1 million is set aside to begin paying the bonds issued in (c). f. A portion of the bonds comes due and $1 million is paid. Of this total, $100,000 represents interest. The interest had not been previously accrued. g. Citizens' property tax levies are assessed. Total billing for this tax is $800,000. 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. h. Cash of $120,000 is received from a toll road. This money is restricted for highway maintenance. i. The county received investments valued at $300,000 as a donation from a grateful citizen. Income from these investments must be used to beautify local parks. Prepare the entries first for fund financial statements and then for government-wide financial statements.

Answer 1

CHESTERFIELD COUNTY Fund-Based Financial Statements General Journal
a	General Fund	Debits	Credits
	Estimated revenues	834000
	Appropriations		540000
	Estimated other financing uses-operating Transfers		242000
	Budgetary Fund Balance		52000
b	Capital Projects Fund	Debits	Credits
	Encumbrances - Office Building	8,000,000
	Fund Balance-Reserved for Park Beautification		8,000,000
c	Capital Projects Fund	Debits	Credits
	Cash	8,000,000
	Other financing uses		8,000,000
d	Capital Projects Fund	Debits	Credits
	Fund Balance-Reserved for Park Beautification - Other financing uses	8,000,000
	Encumbrances Outstanding		8,000,000
	Expenditures	8,000,000
	Contracts Payable		8,000,000
	Contracts Payable	8,000,000
	Cash		8,000,000
e	General Fund	Debits	Credits
	Other financing resources	1,000,000
	Cash		1,000,000
	Debt Service Fund
	Cash	1,000,000
	Other financing resources		1,000,000
f	Debt Service Fund	Debits	Credits
	Expenditures - Bonds	900000
	Expenditures – interest	100000
	Cash		1,000,000
g	General Fund	Debits	Credits
	Property Taxes Receivable	800,000
	Revenues		768000
	Allowance for Uncollectible Taxes (4%)		32000
h	General Fund	Debits	Credits
	Cash	120,000
	Revenues		120,000
I	Permanent Fund	Debits	Credits
	Investments	300,000
	Contribution Revenue		300,000

CHESTERFIELD COUNTY Government-Wide Financial Statements General Journal
a	No Entry	Debits	Credits
b	No Entry	Debits	Credits
c	Governmental Activities	Debits	Credits
	Cash	8,000,000
	Bonds Payable		8,000,000
d	Governmental Activities	Debits	Credits
	Buildings	8,000,000
	Cash		8,000,000
e	No Entry	Debits	Credits
f	Governmental Activities	Debits	Credits
	Bonds Payable	900000
	Interest Expense	100000
	Cash		1,000,000
g	Governmental Activities	Debits	Credits
	Property Taxes Receivable	800,000
	Revenues Control		768000
	Allowance for Uncollectible Taxes		32000