Question

THIS PROBLEM IS ABOUT ACCOUNTING FOR GOVERNMENTAL AND NONPROFIT ORGANIZATIONS！

The City of Duluth has been authorized to build a new library estimated to cost $8,000,000. A bond issue is to provide the funds to construct the building. The attached transactions took place during the fiscal year ending June 30, 20X3 that related to the capital projects fund which was established to account for the construction of the new library. The fund does not enter the budget in the accounting records but does use encumbrance accounting for the project. REQUIRED: ( Prepare all general journal entries, in proper form, required to record the above transactions for the Library Construction Fund for the fiscal year ending June 30, 20X3. Omit explanations. Use the number of the transaction as the date. Prepare a balance sheet for the Library Construction Fund, in proper form, for the fiscal year ending June 30, 20x3 (2)

Answer 1

Date	Event
1-Jan-20X3	Authorization of Bond issued of $8,000,000
	"No Entry Required"
Date	Event
1-Jan-20X3	Sales of half of the bonds at Par
	Accountant Title	Debit	Credit
	Cash	$     4,000,000
	Bonds Payable		$         4,000,000
Date	Event
1-Jan-20X3	Accounting for Cost of issue of bond
	Accountant Title	Debit	Credit
	Cost of issue of bond	$          10,000
	Cash		$              10,000
Date	Event
1-Jan-20X3	Contract with the Lake Construction Company for construction of Library
	"No Entry Required"
Date	Event
1-Jan-20X3	Receipt of invoice of $ 2,500,000
	Accountant Title	Debit	Credit
	Library Construction Cost	$     2,500,000
	Cash		$         2,250,000
	Payble to Lakes Construction Company		$            250,000
Date	Event
1-Jan-20X3	Payment of Architect Fee
	Accountant Title	Debit	Credit
	Library Construction Cost	$        375,000
	Cash		$            375,000
	($7500000*5%)
	Balance Sheet of Capital Project Fund for the period ending - June 30 20X3
		Amount
	Assets
	Cash	$     1,365,000
	Investments	$     2,885,000
		$    4,250,000
	Liabilities
	Bons Payable	$     4,000,000
	Accounts Payable	$        250,000
		$    4,250,000