Question

The citizens of Spencer County approved the issuance of $2.030,000 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, 2020 Debits Credits Cash $ 919,800 Contract payable $ 562, eee Due from state government 214, eee Encumbrances 119,800 Expenditures-capital 1,865, eee Intergovernmental grant 486,eee OFS: premium on bonds 68,800 OFS: proceeds sale of bonds 2,030, eee Budgetary fund balance-Reserve for encumbrances 119, eee OFU: Transfer out 68,eee $3,185, eee $3,185, eee Required: a. Prepare any closing entries necessary at year-end. b. Prepare a Statement of Revenues. Expenditures, and Changes in Fund Balance for the courthouse annex capital project fund. c. Prepare a Balance Sheet for the courthouse annex capital project fund, assuming all unexpended resources are restricted to construction of the courthouse annex. Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Required Prepare any closing entries necessary at year-end. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) No Event General Journal Debit Credit 1 a1 > 2.030,000 68,000 406.000 Other Financing Sources-Proceeds of Bonds Other Financing Sources-Bond Premium Intergovernmental Revenues Expenditures: Capital Outlay Encumbrances Other Financing Uses-Transfers Out Fund Balance 1.865,000 119.000 x 68,000 x

Please bold answer in explanation

Answer 1

No.	Event	General Journal	Debit	Credit
1	a	Other Financing Sources- Proceeds of Bonds	2030000
		Other Financing Sources- Bond Premium	68000
		Inergovernmental Grant	406000
		Expenditure: Capital Outley		1865000
		Other Financing uses-Transfers Out		68000
		Fund Balance		571000
1	b	Budgetary Fund Balance - Reserve for Encumbrances	119000
		Encumbrances		119000

Spencer County
Courthouse Apex Capital Project Fund
Statement of Revenues, Expenditure
and changes in Fund Balance
For the year ended Dec 31, 2020
Revenues:
Inergovernmental Grant	406000
Total Revenues	406000
Expenditures
Expenditure: Capital Outley	1865000
Total Expendiures	1865000
Excess(Deficiency) of revenues over Expenditure	-1459000
Other Financing Sources (uses)
Proceeds of Bonds	2030000
Bond Premium	68000
Transfer out	-68000
Total other financing (uses)	2030000
Net Change in fund Balance	571000

Spencer County
Courthouse Apex Capital Project Fund
Balance Sheet
For the year ended Dec 31, 2020
Assets:
Cash	919000
Due from State Govt.	214000
Total Assets	1133000
Liabilities and Fund Balances:
Liabilities:
Contract Payable	562000
Total Liabilities	562000
Fund Balances:
Restricted for:
Courthouse Annex	571000
Total Fund Balances	571000
Total Liabilities and Fund Balances	1133000