Recording Capital Projects Fund Transactions. In Fulbright County, the Parks and

Question

Recording Capital Projects Fund Transactions.

In Fulbright County, the Parks and Recreation Department constructed a library in one of the county’s high growth areas. The construction was funded by a number of sources. Below is selected information related to the Library Capital Project Fund. All activity related to the library construction occurred within the 2017 fiscal year.

Prepare a journal entry for capital projects fund and governmental activities at the government-wide level.(If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.

1. The county issued $7,900,000, 6 percent bonds, with interest payable semi- annually on June 30 and December 31. The bonds sold for 101 on July 30, 2016. Proceeds from the bonds were to be used for the construction of the library, with all interest and premiums received to be used to service the debt issue.

In Fulbright County, the Parks and Recreation Department constructed a library in one of the county’s high growth areas. The construction was funded by a number of sources. Below is selected information related to the Library Capital Project Fund. All activity related to the library construction occurred within the 2017 fiscal year.

Explanation / Answer

Answer

Date Particulars Debit$ Credit$ 01/01/2015 Bank a/c          7,900,000    To 6% Bond       7,900,000 Being Cash received From bond issue 30/06/2015 Interest a/c              237,000      To Bank          237,000 =7900000*6/100*6/12 Being cash paid towards interest on bond 31/12/2015 Interest a/c              237,000      To Bank          237,000 =7900000*6/100*6/12 Being cash paid towards interest on bond 30/06/2015 Interest a/c              237,000      To Bank          237,000 =7900000*6/100*6/12 Being cash paid towards interest on bond 30/07/2016 6% bond a/c 7979000 Interest a/c 39500      To Bank 8018500 interest'=7900000*6/100*1/12 Sales=79000*101 Being cash paid towards interest on bond as well as sale of bond Library should be capitalised once it completed. The enthy for capitalisation is Library a/c     To bank

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