Chapter 05 – Accounting for General Capital Assets and Capital Projects
5-19
Chapter 5, Solutions, Exercise 5-22 (Cont’d)
Debits Credits
6. Capital Projects Fund:
To close nominal accounts:
OTHER FINANCING SOURCES—
PROCEEDS OF BONDS 6,000,000
OTHER FINANCING SOURCES—
Chapter 05 – Accounting for General Capital Assets and Capital Projects
5-20
Chapter 5, Solutions (Cont’d)
5-23.
Debits Credits
1. Capital Projects Fund:
CASH 150,000
2. Capital Projects Fund:
CASH 500,000
3. Capital Projects Fund:
CASH 2,450,000
OTHER FINANCING USES—
Chapter 05 – Accounting for General Capital Assets and Capital Projects
5-21
Chapter 5, Solutions, Exercise 5-23 (Cont’d)
Debits Credits
4. Capital Projects Fund:
CASH 5,000,000
5. Capital Projects Fund:
CASH 4,000,000
OTHER FINANCING SOURCES—
PROCEEDS OF BONDS 4,000,000
Chapter 05 – Accounting for General Capital Assets and Capital Projects
5-22
Chapter 5, Solutions (Cont’d)
5-24. a. CHANCE COUNTY
WOODLAND PARK CAPITAL PROJECTS FUND
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
FOR THE YEAR END
REVENUES $ 707,000
EXPENDITURES:
CONSTRUCTION EXPENDITURES 4,150,000
EXCESS OF EXPENDITURES OVER (UNDER) REVENUES (3,443,000)
OTHER FINANCING SOURCES:
b. It would appear that the capital project has not been completed since
General Problem Information: Statement of Revenues and Expenditures
Learning Objective: 5-5
Topic: Capital Projects Funds
Bloom’s Taxonomy: Apply
Accreditation Skills tag: AACSB: Knowledge Application; AICPA: FN Reporting
Level of Difficulty: Medium
Chapter 05 – Accounting for General Capital Assets and Capital Projects
5-23
Chapter 5, Solutions (Cont’d)
5-25. a. SURPRISE COUNTY
Debits Credits
1. Construction Fund:
CASH 100,000
2. Construction Fund:
CONSTRUCTION EXPENDITURES—POLICE 30,000
3. Construction Fund:
ENCUMBRANCES—POLICE 21,000,000
5-24
Copyright ©2019 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Chapter 5, Solutions, Exercise 5-25, part a. 4. (Cont’d)
Debits Credits
4. Construction Fund:
CASH 30,000,000
5. Construction Fund:
OTHER FINANCING USES—RETIREMENT OF BANs 100,000
INTEREST EXPENDITURES 3,000
Chapter 05 – Accounting for General Capital Assets and Capital Projects
5-25
Chapter 5, Solutions, Exercise 5-25, part a. (Cont’d)
Debits Credits
6. Construction Fund:
ENCUMBRANCES OUTSTANDING—POLICE 10,000,000
ENCUMBRANCES OUTSTANDING—FIRE 6,000,000
7. Construction Fund:
CASH 500,000
Chapter 05 – Accounting for General Capital Assets and Capital Projects
5-26
Chapter 5, Solutions, Exercise 5-25, part a. (Cont’d)
Debits Credits
8. Construction Fund and Governmental Activities:
9. Construction Fund:
ENCUMBRANCES OUTSTANDING—FIRE 5,000,000
ENCUMBRANCES—FIRE 5,000,000
10. Construction Fund and Governmental Activities:
CONTRACTS PAYABLE 5,000,000
11. Construction Fund:
Chapter 05 – Accounting for General Capital Assets and Capital Projects
5-27
Chapter 5, Solutions, Exercise 5-25, part a. 11. (Cont’d)
Debits Credits
CONSTRUCTION EXPENDITURES—POLICE 7,500,000
CONTRACTS PAYABLE 7,500,000
Governmental Activities:
12. Construction Fund:
OTHER FINANCING SOURCES—PROCEEDS
OF BOND ANTICIPATION NOTES 100,000
OTHER FINANCING SOURCES—PROCEEDS
Chapter 05 – Accounting for General Capital Assets and Capital Projects
5-28
Ch. 5, Solutions, Exercise 5-25 (Cont’d)
SURPRISE COUNTY
CONSTRUCTION FUND
GENERAL LEDGER (NOT REQUIRED)
CASH CONTRACTS PAYABLE
(1) 100,000 (5) 103,000 (8) 16,000,000 (6) 16,000,000
CONTRACTS PAYABLE⎯
VOUCHERS PAYABLE RETAINED PERCENTAGE
(2) 60,000 (10) 300,000 (8) 800,000
ENCUMBRANCES—POLICE ENCUMBRANCES—FIRE
CONSTRUCTION EXPENDITURES CONSTRUCTION EXPENDITURES
—POLICE —FIRE
INTEREST EXPENDITURES OFU—RETIREMENT OF BANS
OFS—PROCEEDS OF BANS OFS—PROCEEDS OF BONDS
REVENUES FUND BALANCE—RESTRICTED
Chapter 05 – Accounting for General Capital Assets and Capital Projects
5-29
Ch. 5, Solutions, Exercise 5-25 (Cont’d)
b. SURPRISE COUNTY
CONSTRUCTION FUND
BALANCE SHEET
DECEMBER 31, 2020
ASSETS
CASH $ 9,997,000
TOTAL ASSETS $ 9,997,000
LIABILITIES AND FUND BALANCES
LIABILITIES:
VOUCHERS PAYABLE $ 60,000
(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
5-30
Ch. 5, Solutions, Exercise 5-25 (Cont’d)
c. SURPRISE COUNTY
CONSTRUCTION FUND
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES
FOR THE PERIOD ENDED DECEMBER 31, 2020
REVENUES $ 500,000
EXPENDITURES:
CONSTRUCTION EXPENDITURES—POLICE 17,530,000
CONSTRUCTION EXPENDITURES—FIRE 11,030,000
d. In the Governmental Activities column of the statement of net position, the
fire station will be reported with other buildings, net of depreciation, if any
Chapter 05 – Accounting for General Capital Assets and Capital Projects
5-31
Ch. 5, Solutions, Exercise 5-25 (Cont’d)
General Problem Information: Multi-project Construction Fund
Learning Objective: 5-2, 5-4, 5–5
Topic: Capital Projects Funds
Bloom’s Taxonomy: Apply
Accreditation Skills tag: AACSB: Knowledge Application, AICPA: FN Reporting
Level of Difficulty: Hard
5-26. a. RIVERSIDE
PARK BUILDING CAPITAL PROJECTS FUND
Debits Credits
1. CASH 500,000
4. CONSTRUCTION EXPENDITURES 18,500
DUE TO OTHER FUNDS 18,500
6. CASH 3,500,000
Chapter 05 – Accounting for General Capital Assets and Capital Projects
5-32
Ch. 5, Solutions, Exercise 5-26, part a. (Cont’d)
Debits Credits
7. CONTRACTS PAYABLE 1,000,000
9. OTHER FINANCING SOURCES—
INTERFUND TRANSFERS IN 500,000
Chapter 05 – Accounting for General Capital Assets and Capital Projects
5-33
Ch. 5, Solutions, Exercise 5-26 (Cont’d)
RIVERSIDE
PARK BUILDING CAPITAL PROJECTS FUND
GENERAL LEDGER (NOT REQUIRED)
CASH
INVESTMENTS
(8) 1,800,000
VOUCHERS PAYABLE
(7) 1,000,000 (5) 1,000,000
CONTRACTS PAYABLE⎯RETAINED PERCENTAGE
DUE TO OTHER FUNDS
(4) 18,500
FUND BALANCE—RESTRICTED
FUND BALANCE—ASSIGNED
OTHER FINANCING SOURCES—INTERFUND TRANSFERS IN
Chapter 05 – Accounting for General Capital Assets and Capital Projects
5-34
Ch. 5, Solutions, Exercise 5-26 (Cont’d)
OTHER FINANCING SOURCES—PROCEEDS OF BONDS
ENCUMBRANCES
ENCUMBRANCES OUTSTANDING
(5) 1,000,000 (2) 2,700,000
CONSTRUCTION EXPENDITURES
Chapter 05 – Accounting for General Capital Assets and Capital Projects
5-35
Ch. 5, Solutions, Exercise 5-26 (Cont’d)
b. RIVERSIDE
PARK BUILDING CAPITAL PROJECTS FUND
BALANCE SHEET
AS OF YEAR END
ASSETS
LIABILITIES AND FUND BALANCES
LIABILITIES:
VOUCHERS PAYABLE $ 69,000
FUND BALANCES:
FUND BALANCE—RESTRICTED $2,500,000
FUND BALANCE—ASSIGNED 412,500
(Note that encumbrances and encumbrances outstanding are not reported on the
balance sheet. They are budgetary accounts that represent construction
Chapter 05 – Accounting for General Capital Assets and Capital Projects
5-36
Ch. 5, Solutions, Exercise 5-26 (Cont’d)
c. RIVERSIDE
PARK BUILDING CAPITAL PROJECTS FUND
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED
EXPENDITURES:
CONSTRUCTION EXPENDITURES $1,087,500
OTHER FINANCING SOURCES AND USES:
INTERFUND TRANSFERS IN $ 500,000
General Problem Information: Capital Project Transactions
Learning Objective: 5-2, 5-4, 5–5
Topic: Capital Projects Funds
Bloom’s Taxonomy: Apply
Accreditation Skills tag: AACSB: Knowledge Application, AICPA: FN Reporting
Level of Difficulty: Hard