Question

Not for profit- Kindly assist me with the below

ZEE Township entered into the following transactions during 20X4.

Prepare the journal entries required in the Capital Projects Fund to account for

the below transactions.

1. The township authorized a bond issue of $11 million for the construction of a

   pedestrian walkway as part of a downtown revitalization project. An additional

  $2 million of general revenues is to be used for the project. The authorization was

  recorded in the appropriate fund.

2. Two million dollars of general revenues were paid to the construction fund from the

   General Fund.

3. The bonds were issued at 110. The premium was transferred to the fund from which

    the debt is to be serviced.                                                 

4. The township entered into a contract with Copfer Construction Company for

  construction of the walkway at an estimated cost of $10,350,000.

5. An engineering design firm was paid $174,000 for design work on the project.

6. A bill for $4,200,000 was received from Copfer Construction Company for work  

  completed on the walkway to date. All but a 5% retainage was paid.

7. The accounts were closed at year end.

Answer 1