Prepare a balance sheet for the governmental funds

Assignment Help Accounting Basics
Reference no: EM132280249

Question - The state government established a capital project fund in 2016 to build new highways. The fund is supported by a 5 percent tax on diesel fuel sales in the state. The tax is collected by private gas station and remitted in the following month the State. The following transaction occurred during 2017:

Capital Project Fund Trial Balance December 31, 2016

Debit Credit

Cash $8,700,000

Taxes Receivable 2,550,000

Contracts Payable $1,875,000

Fund Balance 9,375,000

1. $2,100,000 of encumbrances outstanding at December 31, 2016, were re-established.

2. During the year, fuel taxes were remitted to the State totaling $23,600,000, including the amount due at the end of the previous year. In addition, $2,900,000 is expected to be remitted in January of next year for fuel sales in December 2017.

3. The State awarded new contracts for road construction totaling $23,650,000.

4. During the year, contractors submitted invoices for payment totaling $24,005,000. These were all under the terms of contracts (i,e., same $ amounts) issued by the State.

5. The State made payments on outstanding accounts of $23,375,000. The state government operates a debt service fund to service outstanding general obligation bonds. The following transaction occurred during 2017:

Debt Service Fund Trial Balance December 31, 2016

Debit Credit

Cash $175,000

Fund Balance 175,000

1. The state General Fund provided cash of $4,800,000 through transfer to the debt service fund.

2. Payments for matured inters totaled $2, 985,000 and payments for matured principal totaled $1,850,000during the year.

3. In December, the State refunded bonds to obtain a better interest rate. New bonds were issued providing proceeds of $20,000,000, which was immediately used to retire outstanding bonds in the same amount.

Required: Use the Excel template provided. A separate tab is provided in Excel for each of the requirements:

a) Prepare a journal entries recording the events 1 to 8 (above) for the capital projects and debt service funds.

b) Post the journal entries to T-accounts.

c) Prepare closing entries.

d) Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the Governmental Funds (the General Fund and special revenue fund financial statements have already been prepared)

e) Prepare a Balance Sheet for the Governmental Funds assuming all unexpected spendable net resources in the capital projects fund are classified as restricted and in the debt service fund are classified as assigned.

Reference no: EM132280249

Corporation balance of retained earnings

How will the declaration and distribution of a 10 percent stock dividend affect the issuing corporation's balance of retained earnings and total stockholders' equity, respec

Percieved value to decision makers

If a publicily traded company is trying to maximize its percieved value to decision makers external to the corporation, the company is most likely to understate which of the

Calculate and suggest possible reasons for the materials

Calculate and suggest possible reasons for the materials usage variance from the following data:- Standard price per tonne is £50, Standard usage is 1.000 tonnes, Actual price

At each calendar year end, Mazie Supply Co. uses

1.At each calendar year end, Mazie Supply Co. uses the percent of accounts receivable method to estimate bad debts. On December 31, 2013, it has outstanding accounts receivabl

Reported time changes

Find a web site that produces a large amount of dat a. Investigate caching by running fetchall twice in succession to see whether the rep orted time changes much. Do you get

Calculate the amount of loan you will need

Have a huge impact on who you marry. Are you going to take on another person's debt or are they going to take on your debt and have a huge impact on if/when you buy a house

Introducing the frequent buyer program

Draw Jim's budget line (throughout, please put coffee on the vertical axis)-Use a budget line-indifference curve map analysis to explain which pricing scheme Jim prefers.

What is the new market value of the company

TUV Guy Inc. is proposing a rights offering. There are currently 240,000 shares outstanding at $80 each. There will be 60,000 new shares offered at $60 each. What is the new


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd