Interfund-GCA-GLTL Transactions-state of Delaware) Record the following transact
ID: 2502121 • Letter: I
Question
Interfund-GCA-GLTL Transactions-state of Delaware) Record the following transactions of the
state of Delaware general government activities for the year ended June 30,20x6 (Amounts are
stated in thousands of dollars.) Make all required entries.
1.) On September 1, 20x5, the state issued 132,000 (face amount) of 20-year bonds at a
premium of 4,850 to finance construction of school buildings (owned by the state) across
the state. Bond issue costs of 343 were paid from the proceeds.
2.) The state signed construction contracts totaling 168,000.
3.) The state incurred construction cost of 120,000 on school buildings. These costs included
the costs incurred on buildings completed during the year, 100,000. The remaining costs
20,000 were incurred on projects still in progress at year-end.
4.) The state paid general government bond principal of 113,781 and interest of 49,037
during fiscal year 20x6.
5.) The state depreciates its buildings over 40 years and takes a full year’s depreciation in the
year that a capital asset is placed in service.
6.) Profits in the amount of 230,000 were transferred to the General Fund from the Lottery
Enterprise Fund during the year.
7.) The following capital assets were purchased with general Fund resources: Land, 22,241; Vehicles, 7670; and equipment, 4981; vehicles are depreciated
using a 5-year useful life, and other equipment is depreciated using a 4-year life.
8.) The beginning balance of general government claims and judgments liabilities (all long term) was 126,499. Claims and judgments incurred during the year totaled 562,441. Actual claim payments during the year were 556,089. None of the unpaid claims and judgments at June 30,20x6, are due and payable.
9.) The state’s annual pension cost for the fiscal year based on an acceptable actuarial
computation, with appropriate adjustments for interest on the state’s Net Pension
Obligation and adjustments to the actuarially required contribution is 24,623. The state
contributed 20,655 to the pension trust fund during the year. None of the underpayment is
due and payable at June 30, 20x6.
Explanation / Answer
Journal entries:
Date Accounts and explanations Debit ($) Credit ($) 1) Sep. 1, 2015 Bank 136,850 Bonds 132,000 Premium on bonds 4,850 (To record the issue of bonds with premium) Sep. 1, 2015 Expense for issuance of bonds 343 Bank 343 (To record the bond issuance expense) 2 No entry is recorded for signing on construction contract 3 Buildings 100,000 Project in progress 20,000 Bank 120,000 (To record the costs incurred on contruction of buildings and projects that were in progress) 4 Bonds 113,781 Interest on bonds 49,037 Bank 162,818 (To record the payment of bonds and its interest) 5 Depreciation expense ($100,000/40 years) 2,500 Buildings 2,500 (To record the depreciation on buildings for the year) 6 Lottery Enterprise Fund 230,000 General fund 230,000 (To record the transfer of profits from lottery enterprise fund to general fund) 7 Land 22,241 Vehicles 7,670 Equipment 4,981 Bank 34,892 (To record the purchase of assets with general fund resources) 8 Claims and judgements 562,441 Claims and judgements payable 562,441 (To record the incur of claims and judgements for the year) 8 Claims and judgements payable 556,089 Bank 556,089 (To record the payment of claims and judgements during the year) 9 Pension trust fund 20,655 Bank 20,655 (To record the contribution to pension trust fund)Related Questions
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