The citizens of Spencer County approved the issuance of$2,003,000 in 6 percent general obligation bonds to finance theconstruction of a courthouse annex. A capital projects fund wasestablished for that purpose. The preclosing trial balance of thecourthouse annex capital project fund follows:
Trial Balance-December 31, 2017 | Debits | Credits |
Cash | $905,000 | |
Contracts payable | | $550,000 |
Due from state government | 188,000 | |
Encumbrances | 105,000 | |
Expenditures-capital | 1,851,000 | |
Intergovernmental grant | | 391,000 |
OFS: premium on bonds | | 54,000 |
OFS: proceeds sale of bonds | | 2,003,000 |
Budgetary fund balance-Reserve for encumbrances | | 105,000 |
OFU: Transfer out | 54,000 | |
| $3,103,000 | $3,103,000 |
a. Prepare any closing entries necessary at year-end
b. Prepare a Statement of Revenues, Expenditures, and Changes inFund Balance for the courthouse annex capital project fund.
c. Prepare a Balance Sheet for the courthouse annex capitalproject fund, assuming all unexpended resources are restricted toconstruction of the courthouse annex.
