Question

The Trail City School District engaged in the following events and transactions during its fiscal year ending June 30, 2017. Remember that you need to apply full accrual basis to all transactions and events for the government-wide financial statements.

Required: Prepare the journal entries that would be needed to reflect the transactions and events (below) in Trail City’s School District government-wide financial statements. Transactions and events are below.

you might not need all of the account titles listed below – use what is appropriate for the problem):

Cash

Construction in Process

Tax Anticipation Notes Payable

Liability for Compensated Absences

Claims and Judgments Payable

Bonds Payable

Compensation Expense

Claims and Judgments Expense

Rent Expense

Transactions and events:

1. Teachers and other personnel earned $350,000 in vacations and other compensated absences that they did not take but for which they expect to be paid in the future.

2. The district settled a suit brought by a student, agreeing to pay $3,000,000 by June 30, 2017.

3. (a) The district issued $8,000,000 in general obligation bonds to finance an addition to its high school. (b) By year-end Trail City had expended $1,000,000 in construction costs.

4. The Trail City School District issued 90-day tax anticipation notes of $950,000.

5. The Trail City School District paid teachers and other personnel $150,000 for compensated absences earned in previous years.

Answer 1