The City of Catalina authorized the construction of a new recreation center at a total cost of $1,000,000 on June 15, 2014. On the same date, the city approved a $1,000,000, 8 percent, 10-year general obligation serial bond issue to finance the project. During the year July 1, 2014, to June 30, 2015, the following transactions and events occurred relative to the recreation center project:
1. On July 1, 2014, the city sold $500,000 par of the authorized bonds, with interest payment dates on December 31 and June 30 and the first serial retirement to be made on June 30, 2015. The bonds were sold at 102.
2. On July 5, 2014, a construction contract for the recreation center was created in the amount of $960,000.
3. On December 15, 2014, the contractor’s bill for $320,000 was received based on certification that the work was one-third completed.
4. The contractor was paid for one-third of the contract less a 10 percent retained percentage to ensure performance.
5. On December 30, 2014, the GF transferred $30,000 to the fund responsible for servicing the serial bonds.
6. Interest on the serial bonds was paid on December 31, 2014, with the money transferred from the GF and the CPF.
7. On June 15, 2015, the contractor’s bill for $320,000 was received based on certification that the work was two-thirds completed.
8. On June 28, 2015, the GF transferred $90,000 to the fund responsible for servicing the serial bonds: $20,000 for interest and $50,000 for principal.
9. Interest and principal on the serial bonds were paid on June 30, 2015.
10. On June 30, 2015, the city sold the remaining $500,000 par of authorized bonds at par.
REQUIRED
1. Prepare all journal entries in the funds necessary to account for the transactions and events given. (If amounts are not known, use xxx.)
2. Prepare financial statements for the CPF for the year ended June 30, 2015.
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