Chapter 05 – Accounting for General Capital Assets and Capital Projects
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Ch. 5, Solutions, 5-23 (Cont’d)
SURPRISE COUNTY
CONSTRUCTION FUND
GENERAL LEDGER (NOT REQUIRED)
CASH CONTRACTS PAYABLE
CONTRACTS PAYABLE⎯
VOUCHERS PAYABLE RETAINED PERCENTAGE
(2) 60,000 (10) 300,000 (8) 800,000
ENCUMBRANCES—POLICE ENCUMBRANCES—FIRE
(3) 21,000,000 (6) 10,000,000 (3) 11,000,000 (6) 6,000,000
(11) 7,500,000 (9) 5,000,000
—POLICE —FIRE
INTEREST EXPENDITURES OFU—REPAYMENT OF BANS
OFS—PROCEEDS OF BANS OFS—PROCEEDS OF BONDS
REVENUES FUND BALANCE—RESTRICTED
Chapter 05 – Accounting for General Capital Assets and Capital Projects
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Ch. 5, Solutions, 5-23 (Cont’d)
b. SURPRISE COUNTY
CONSTRUCTION FUND
BALANCE SHEET
DECEMBER 31, 2017
ASSETS
CASH $ 9,997,000
TOTAL ASSETS $ 9,997,000
LIABILITIES AND FUND BALANCES
LIABILITIES:
(Note that encumbrances and encumbrances outstanding are not reported on the
balance sheet. They are budgetary accounts that represent construction
commitments.)
Chapter 05 – Accounting for General Capital Assets and Capital Projects
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Ch. 5, Solutions, 5-23 (Cont’d)
c. SURPRISE COUNTY
CONSTRUCTION FUND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES
FOR THE PERIOD ENDED DECEMBER 31, 2017
REVENUES $ 500,000
EXPENDITURES:
CONSTRUCTION EXPENDITURES—POLICE 17,530,000
OTHER FINANCING SOURCES (USES):
PROCEEDS OF BOND ANTICIPATION NOTES 100,000
d. In the Governmental Activities column of the statement of net position,
the fire station will be reported with other buildings, net of depreciation,
Chapter 05 – Accounting for General Capital Assets and Capital Projects
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Ch. 5, Solutions, 5-23 (Cont’d)
General Problem Information: Multi-project Construction Fund
Learning Objective: 5-4
Learning Objective: 5-5
Topic: Capital Projects Funds
Bloom’s Taxonomy: Apply
Accreditation Skills tag: AACSB: Knowledge Application, AICPA: FN Reporting
Level of Difficulty: Hard
5-24. a. RIVERSIDE
PARK BUILDING CAPITAL PROJECTS FUND
Debits Credits
1. CASH 500,000
OTHER FINANCING SOURCES—INTERFUND
TRANSFERS IN 500,000
2. ENCUMBRANCES 2,700,000
ENCUMBRANCES OUTSTANDING 2,700,000
Chapter 05 – Accounting for General Capital Assets and Capital Projects
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Ch. 5, Solutions, 5-24, part a. (Cont’d)
Debits Credits
7. CONTRACTS PAYABLE 1,000,000
9. OTHER FINANCING SOURCES—
INTERFUND TRANSFERS IN 500,000
OTHER FINANCING SOURCES—
Chapter 05 – Accounting for General Capital Assets and Capital Projects
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Ch. 5, Solutions, 5-24 (Cont’d)
RIVERSIDE
PARK BUILDING CAPITAL PROJECTS FUND
GENERAL LEDGER (NOT REQUIRED)
CASH
INVESTMENTS
(8) 1,800,000
VOUCHERS PAYABLE
CONTRACTS PAYABLE
CONTRACTS PAYABLE⎯RETAINED PERCENTAGE
(7) 50,000
DUE TO OTHER FUNDS
Chapter 05 – Accounting for General Capital Assets and Capital Projects
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Ch. 5, Solutions, 5-24 (Cont’d)
OTHER FINANCING SOURCES—PROCEEDS OF BONDS
(9) 3,500,000 (6) 3,500,000
ENCUMBRANCES
Chapter 05 – Accounting for General Capital Assets and Capital Projects
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Ch. 5, Solutions, 5-24 (Cont’d)
b. RIVERSIDE
PARK BUILDING CAPITAL PROJECTS FUND
BALANCE SHEET, DECEMBER 31, 2017
ASSETS
CASH $1,250,000
INVESTMENTS 1,800,000
TOTAL ASSETS $3,050,000
LIABILITIES AND FUND BALANCES
LIABILITIES:
Chapter 05 – Accounting for General Capital Assets and Capital Projects
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Ch. 5, Solutions, 5-24 (Cont’d)
c. RIVERSIDE
PARK BUILDING CAPITAL PROJECTS FUND
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
FOR THE PERIOD ENDED DECEMBER 31, 2017
EXPENDITURES:
CONSTRUCTION EXPENDITURES $1,087,500
OTHER FINANCING SOURCES AND USES:
General Problem Information: Capital Project Transactions
Learning Objective: 5-4
Learning Objective: 5-5
Topic: Capital Projects Funds
Bloom’s Taxonomy: Apply
Accreditation Skills tag: AACSB: Knowledge Application, AICPA: FN Reporting
Level of Difficulty: Hard