need help with journal entry for para.5-a-5: instructions pasted


Question Description:

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need help with journal entry for para.5-a-5: instructions pasted below:

Chapter 5 Recording Capital Asset and Capital Project Transactions

City Hall Annex Construction Fund and Governmental Activities at the Government-wide Level

During fiscal year 2013, the voters of the City of Bingham approved the issuance of 3 percent tax supported bonds in the face amount of $6,000,000 to construct and equip an annex to the City Hall. The bonds are to mature in blocks of $250,000 every six months over a 12-year period commencing January 1, 2015.

Required

a. Record the following transactions in the general journals of the City Hall Annex Construction Fund and governmental activities at the government-wide level. Do not record entries at this time in any other affected funds; those entries will be made in later chapters of this cumulative problem that cover those funds. Use account titles listed under the drop-down [Account #-Account Description] menu. Select 2014 for each transaction in the [Year] menu of the [Journal] view. Enter the paragraph reference; i.e., 5-a-(1, 2, 3, etc.), corresponding to each transaction in the [Transaction Description] box. The following account titles should appear in the [Accounts] view:

Cash
Investments
Special Assessments Receivable—Current
Interest Receivable on Investments
Vouchers Payable
Judgments Payable
Contracts Payable
Contracts Payable—Retained Percentage
Fund Balance—Restricted
Encumbrances Outstanding
Revenues
Other Financing Sources—Proceeds of Bonds
Construction Expenditures
Interest Expenditures
Other Financing Uses—Interfund Transfers Out
Encumbrances

Please remember that before closing the City of Bingham, you must click on [File], and [Save/Save As] to save your work. Your work is NOT automatically saved.

1. [Para. 5-a-1] On the first day of the 2014 fiscal year (January 1, 2014), the bond issue was sold at 101. Cash in the face amount of the bonds, $6,000,000, was deposited in the City Hall Annex Construction Fund; the premium was deposited in the debt service fund, as required by state law. Make the appropriate entries in the general journals of the Capital Projects Fund and governmental activities at the government-wide level. Wait until instructed in Chapter 6 to make the corresponding entry in the debt service fund.

2. [Para. 5-a-2] The city invested $3,000,000 of the bond proceeds in 90-day notes.

3. [Para. 5-a-3] The City Hall Annex Construction Fund purchased land for the annex for $500,000. This amount was vouchered. In the governmental activities general journal at the government-wide level, this purchase should be debited to Land.

4. [Para. 5-a-4] A contract for architectural services was signed at an estimated amount of $320,000 for the design of the City Hall Annex.

5. [Para. 5-a-5] Legal and other capitalizable costs of the bond issue were vouchered in the amount of $100,000.

Answer

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