Question

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