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The following transactions took place in the town of Burchette during 20X3

1. A bond issue of $12,000,000 was authorized fro the construction of a library, and the estimated bond issue proceeds and related appropriations were recorded in the General ledger accounts of a new Capital Project Fund.

2. The bonds were sold at a premium of $90,000

3. The cost of issuing the bonds, $80,000, was paid

4. An order was placed for materials estimated to cost $6,500,000

5. Salaries and wages of $500,000 were paid

6. The premium, net of bond issuance costs, was transferred to a debt service fund.

The following transactions took place during 20X4

7. The materials were received; the actual cost was $6,585,000

8. Salaries and Wages of $4,010,000 were paid

9. All outstanding bills were paid

10. The project was completed. The accounts were closed, and the remaining balance was transferred to the Debt Serivce Fund.

Q: Prepare a Capital Projects Fund Statement of Revenues, Expenditures, and Changes in Fund Balance for the project, including (1) the year ended December 31, 20X3 and (2) a seperate budgetary combined comparision statement for the years ended December 31, 20X3 and 20X4..

Explanation / Answer

Prepare a Capital Projects Fund Statement of Revenues, Expenditures, and Changes in Fund Balance for the project:

(1) the year ended December 31, 20X3:

(2) a separate budgetary combined comparison statement for the years ended December 31, 20X3 and 20X4..:

Revenues: General HUD
programs Community
development Route
7 construction Other
governmental
funds Total
governmental
funds Property taxes Franchisee taxes    Total revenues $                      -   Expenditures: The actual cost of material Salaries and wages $          500,000 $          500,000 Expenditure on bond issue $            80,000 $            80,000     Total expenditures $          580,000 $          580,000 Excess (deficiency) of income
over expenditure $        (580,000) $        (580,000) Othervfinnacing sources Proceeds from issue of bonds
(including premium) $    12,090,000 $    12,090,000 Special item Fund balance- Beginning Fund balance- ending

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