Reference no: EM132690935
Problem 1: Tiger Township decides to construct a new city hall. Based on the following data, statement of revenues, expenditures, and changes in fund balance for tiger Township's Capital Projects Fund. All transactions occur within the calendar year 2013.
a. The Fund starts and ends the year with a zero fund balance.
b. The Fund's financing sources for the city hall project were: bond proceeds - $5 million; operating transfer from the General Fund - $2 million; state grant - $1 million; interest from the temporary investment of cash - $70,000.
c. The total costs of constructing the new city hall were: construction costs - $7,200,000; design and construction supervision fees - $600,000.
d. City laws require that, whenever bonds are used, any remaining difference between total financing sources and construction costs must be transferred to the Debt Service Fund. Therefore, $270,000 was transferred to the Debt Service Fund.
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