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Exercise $5-26($Static$)$ Capital Projects Transactions $[$LO $5-2,5-4,5-5)$

Mis year Southlork began work on a senige center to hold activities for its growing senior cifzen population. it is to be franced by a

$$5,000,000$ bond istue. o $$500,090$ grant, and a $$$00,000$ General Fund trensle. The fallowing transactions occurred during the

current year:

The General Fund translerred $$500,000$ to the Senier Center Capitai Projtcts Fund.

A plot of land was purchased for $$400,000$ in cash. $($This cost had not been encumbered$)$

Preliminery plaving and erigineering costs of $$95,000$ were vouchered. $($This cost had not been encumbered$)$

A contract was signed with Sunset Conatruction Company for the major part of the project on a bid of $$4,950,000.$

The $$5,000000$ bonds were issued at par.

Temporary investments were purchased at a cost of $$3,500,000.$

A poyable was recorded for a $549500$ billing from the Water and Sewer enterprise find for the cost of extending water pipes to the

new bulding. $($This cost had not been encumbered.$)$

An invoice in the amount of $$1,500,000$ was recelived from Sunset Construction Company for pregress to date on the project.

The amount billed by the contractor less $5$ percent retainage was paid.

Haif of the planing and engineering costs and $$25,000$ of the water and sewer billing were paid.

Grant revenue of $$100,000$ was recelved in caich for construction expenditires that were considered allowable costs in bccordance

with the grant agreement.

Closing entries were prepared as of year$-$end. Assume that $$2,500,000$ of the encumbrances outstanding wall be paid from the

bond proceeds and are therefore considered restricted resources. The remaining fund balance is assigned.

Airquired

a$.$ Prepare joumal entries to recond the preceding information in the general ledget accounts for the Senior Center Capital Projects

Fund.

b$.$ Prepare o statement of revenues, expenditures, asd changes in fund bolances for the period.

c$.$ Preose o balance sheet for the Senior Center Capital Projects Fund as of yeatend.

Frepare a statement of rewehues, expenditures, and chatiges in fund balances for the pariod.

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