You are the Finance Director of the Town of Blue Mountain. Presented below is th
ID: 2415510 • Letter: Y
Question
You are the Finance Director of the Town of Blue Mountain. Presented below is the trial balance for a Capital Projects Fund of the Town at October 31, 2013. The Town Engineer has advised you that the project accounted for within this fund, a new system of bicycle trails, is complete and formal acceptance by the Town is pending. The Town Council has directed you to abolish this fund and transfer any remaining net assets to the Town’s Debt Service Fund. Prepare the entries necessary to settle the remaining liabilities of the fund, close the accounts, and transfer the remaining net assets to the Debt Service Fund.
.
Town of Blue Mountain
Capital Projects Fund
Preclosing Trial Balance
October 31, 2013
Debits
Credits
Cash
$ 70,160
Vouchers payable
$ 24,450
Retainage percentage
42,750
Restricted fund balance
117,285
Revenues - interest
50,175
Expenditures - capital outlay
197,000
Transfer in from General Fund
32,500
$ 267,160
$ 267,160
Town of Blue Mountain
Capital Projects Fund
Preclosing Trial Balance
October 31, 2013
Debits
Credits
Cash
$ 70,160
Vouchers payable
$ 24,450
Retainage percentage
42,750
Restricted fund balance
117,285
Revenues - interest
50,175
Expenditures - capital outlay
197,000
Transfer in from General Fund
32,500
$ 267,160
$ 267,160
Explanation / Answer
solution :
Account title Debit credit Vouchers payable 24450 Retainage percentage 42750 cash 67200 Revenues - interest 50175 Restricted fund balance (117285-(70160-67200) 114325 Transfer in from General Fund 32500 Expenditures - capital outlay 197000 Tranfer to debt service fund 2960 cash 2960 (70160 - 67200) Restricted fund balance (117285-(70160-67200) 2960 Tranfer to debt service fund 2960Related Questions
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