60.1K

Verified Solution

Link Copied!

true or false

16. The appropriate JE to show the transfer of $9,000,000 from the GF to the CPF on the books of the CPF is a DR of 9,000,000 to Cash and a CR of 9,000,000 to OFS. 17. The appropriate JE to show the transfer of $9,000,000 from the GF to the CPF for GA is a DR of 9,000,000 to OFU and a CR of 9,000,000 to Cash. 18. If the CPF enters into a contract with a turn-key builder to build the City Hall Building for $9,000,000, the correct JE for CPF should be to DR Buildings for 9,000,000 and CR Contracts Payable for 9,000,000. 19. Given the information in # 18 above, the correct JE for GA is none (i.e., no Je will be made for GA for this particular transaction). 20. If the city incurs a cost of $4,500,000 (part of the agreed upon amount in the contract in # 18 above) and is billed for this amount (assume that this amount will be paid ASAP and that the correct liability account to use is Contracts Payable), the correct JEs for CPF are 1) DR Encumbrances Outstanding for 4,500,000 and CR Encumbrances for 4,500,000, and 2) DR Construction Expenditures for 4,500,000 and CR Contracts Payable for 4,500,000 21. Given the information in # 20 above, the correct JE for GA is the same as the one for CPF in # 20 above. Journal Entry T/F: Read the transactions described below and answer T if the JE(3) presented is/are totally correct. Answer F if any part of the JE(S) is/are incorrected. Assume that the City of Prospect has established a Capital Project Fund (CPF) because a grant from the federal government has been approved that will be applied toward the building of a new City Hall Building. The General Fund (GF) will transfer all needed funds to the CPF. Use this information, and that provided below, to answer questions 16-25. JEs should be those made on the books of the CPF or for the Government Wide statements GA category as designated in each question. 16. The appropriate JE to show the transfer of $9,000,000 from the GF to the CPF on the books of the CPF is a DR of 9,000,000 to Cash and a CR of 9,000,000 to OFS. 17. The appropriate JE to show the transfer of $9,000,000 from the GF to the CPF for GA is a DR of 9,000,000 to OFU and a CR of 9,000,000 to Cash. 18. If the CPF enters into a contract with a turn-key builder to build the City Hall Building for $9,000,000, the correct JE for CPF should be to DR Buildings for 9,000,000 and CR Contracts Payable for 9,000,000. 19. Given the information in # 18 above, the correct JE for GA is none (i.e., no Je will be made for GA for this particular transaction). 20. If the city incurs a cost of $4,500,000 (part of the agreed upon amount in the contract in # 18 above) and is billed for this amount (assume that this amount will be paid ASAP and that the correct liability account to use is Contracts Payable), the correct JEs for CPF are 1) DR Encumbrances Outstanding for 4,500,000 and CR Encumbrances for 4,500,000, and 2) DR Construction Expenditures for 4,500,000 and CR Contracts Payable for 4,500,000 21. Given the information in # 20 above, the correct JE for GA is the same as the one for CPF in # 20 above. Journal Entry T/F: Read the transactions described below and answer T if the JE(3) presented is/are totally correct. Answer F if any part of the JE(S) is/are incorrected. Assume that the City of Prospect has established a Capital Project Fund (CPF) because a grant from the federal government has been approved that will be applied toward the building of a new City Hall Building. The General Fund (GF) will transfer all needed funds to the CPF. Use this information, and that provided below, to answer questions 16-25. JEs should be those made on the books of the CPF or for the Government Wide statements GA category as designated in each

Answer & Explanation Solved by verified expert

See Answer