Chesterfield County had the following transactions.
- A budget is passed for all ongoing activities. Revenue is
anticipated to be $871,250 with approved spending of $559,000 and
operating transfers out of $257,000.
- A contract is signed with a construction company to build a new
central office building for the government at a cost of $6,700,000
. A budget for this project has previously been recorded.
- Bonds are sold for $6,700,000 (face value) to finance
construction of the new office building.
- The new building is completed. An invoice for $6,700,000 is
received and paid.
- Previously unrestricted cash of $1,300,000 is set aside to
begin paying the bonds issued in (c).
- A portion of the bonds comes due and $1,300,000 is paid. Of
this total, $175,000 represents interest. The interest had not been
previously accrued.
- Citizens' property tax levies are assessed. Total billing for
this tax is $810,000. On this date, the assessment is a legally
enforceable claim according to the laws of this state. The money to
be received is designated for the current period and 90 percent is
assumed to be collectible in this period with receipt of an
additional 6 percent during subsequent periods but in time to be
available to pay current period claims. The remainder is expected
to be uncollectible.
- Cash of $150,000 is received from a toll road. This money is
restricted for highway maintenance.
- The county received investments valued at $322,000 as a
donation from a grateful citizen. Income from these investments
must be used to beautify local parks.
Prepare the entries first for fund financial statements and then
for government-wide financial statements.