The City of St. Louis, Mississippi (population just under 24,000) passed a bond issue for $2,500,000, 4.5 percent, semiannual interest, 10 year bonds to finance the construction of a second high school to be called McGhee High, named in memory of the Pulitzer Prize winning author, William Faulkner. The State also contributed $110,000 for construction of the gymnasium. The contractor selected then submitted her contract for $2,080,000 to commence on January 2, 2019, with the project’s estimated completion in late 2019.
Part 1:
A. Debit to Encumbrances—2019, $2,500,000.
B. Debit to Construction Work-in-Progress, $2,080,000.
C. Credit to Encumbrances—2019, $2,080,000.
D. Credit to Encumbrances Outstanding—2019, $2,080,000.
A. Credit to Program Revenues—Public Education—Capital Grants and Contributions, $110,000.
B. Credit to Revenues, $110,000.
C. Debit to Other Financing Uses—Transfers-out, $110,000.
D. Credit to Other Financing Uses—Transfers-in, $110,000.
A. Debit to Cash, $110,000.
B. Credit to Cash, $110,000.
C. Debit to Other Financing Sources, $110,000.
D. Credit to Other Financing Uses, $110,000
A. Credit to Other Financing Sources, $110,000.
B. Debit to Other Financing Uses, $110,000.
C. Credit to Cash, $110,000.
D. Credit to Grants Receivable, $110,000
A. Debit to Encumbrances—2019, $700,000.
B. Credit to Cash, $700,000.
C. Debit to Encumbrances Outstanding—2019, $700,000.
D. Debit to Construction-work-in progress, $700,000
Part 2:
6. Assuming the partial billing was approved for payment and the expenditure and liability (contracts payable) was recorded for $700,000; however, St. Louis has a policy of not paying 100 percent, but retaining 20 percent as a retained percentage. The entry in the Capital Projects Fund to record the allowed payment and retained percentage would include:
A. Credit to Cash, $560,000.
B. Debit to Contracts Payable, $560,000.
C. Credit to Contracts Payable—Retained Percentage, $560,000.
D. Debit to Contracts Payable, $140,000.
A. Credit to Other Financing Sources—proceeds of BANs, $600,000.
B. Debit to Cash, $1,900,000.
C. Credit to Bonds Payable, $600,000.
D. Debit to Cash, $600,000.
A. Debit to Other Financing Uses—Retirement of BANs, $600,000.
B. Credit to Cash, $600,000.
C. Debit to Bond Anticipation Notes Payable, $600,000.
D. Debit to Expenses—Interest on Long-term Debt, $7,500.
Part 3:
A. Credit to Buildings, $3,200,000.
B. Debit to Buildings, $3,200,000.
C. No entry would be recorded in the Capital Projects Fund.
D. Credit to Encumbrances—2019, $3,200,000
A. Cash.
B. Other Financing Sources—Proceeds of Bonds.
C. Expenses—Interest on Long-term Debt.
D. Construction Work in Progress
Will Thumbs Up Immediately If Answered,
Dear Student,
As per the HOMEWORKLIB POLICY only the first four questions should be answered. Kindly take note of it.
1. option B. Debit to Construction Work-in-Progress, $2,080,000
Encumbrances are not associated with debt services fund.
2. answer is option B. Credit to Revenues, $110,000
Any grant received is the revenue for the city.
3. answer is option D. Credit to Other Financing Uses, $110,000
Transferring money is referred to as a use of money.
4. answer is option A. Credit to Other Financing Sources, $110,000
Receiving money through transfer is one of the financing sources.
The City of St. Louis, Mississippi (population just under 24,000) passed a bond issue for $2,500,000, 4.5 percent, semiannual interest, 10 year bonds to finance the construction of a second high schoo...
The City of St. Louis, Mississippi (population just under 24,000) passed a bond issue for $2,500,000, 4.5 percent, semiannual interest, 10 year bonds to finance the construction of a second high school to be called McGhee High, named in memory of the Pulitzer Prize winning author, William Faulkner. The State also contributed $110,000 for construction of the gymnasium. The contractor selected then submitted her contract for $2,080,000 to commence on January 2, 2019, with the project’s estimated completion in late...
The City of St. Louis, Mississippi (population just under 24,000) passed a bond issue for $2,500,000, 4.5 percent, semiannual interest, 10 year bonds to finance the construction of a second high school to be called McGhee High, named in memory of the Pulitzer Prize winning author, William Faulkner. The State also contributed $110,000 for construction of the gymnasium. The contractor selected then submitted her contract for $2,080,000 to commence on January 2, 2019, with the project’s estimated completion in late...
The City of Oxford, Mississippi (population just under 24,000) passed a bond issue for $2,500,000, 4.5 percent, semiannual interest, 10 year bonds to finance the construction of a second high school to be called Yoknapatawpha High, named in memory of the Pulitzer Prize winning author, William Faulkner. The State also contributed $110,000 for construction of the gymnasium. The contractor selected then submitted her contract for $2,080,000 to commence on January 2, 2019, with the project’s estimated completion in late 2019....
The City of Oxford, Mississippi (population just under 24,000) passed a bond issue for $2,500,000, 4.5 percent, semiannual interest, 10 year bonds to finance the construction of a second high school to be called Yoknapatawpha High, named in memory of the Pulitzer Prize winning author, William Faulkner. The State also contributed $110,000 for construction of the gymnasium. The contractor selected then submitted her contract for $2,080,000 to commence on January 2, 2019, with the project’s estimated completion in late 2019....
The City of Oxford, Mississippi (population just under 24,000) passed a bond issue for $2,500,000, 4.5 percent, semiannual interest, 10 year bonds to finance the construction of a second high school to be called Yoknapatawpha High, named in memory of the Pulitzer Prize winning author, William Faulkner. The State also contributed $110,000 for construction of the gymnasium. The contractor selected then submitted her contract for $2,080,000 to commence on January 2, 2019, with the project’s estimated completion in late 2019....
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