Advanced Governmental and Nonprofit Accounting Worksheet on Capital Project Fund Case I: The town of NN wants to constru

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Advanced Governmental and
Nonprofit Accounting
Worksheet on Capital Project
Fund
Case I: The town of NN wants to construct a new
library on the site owned by the town. The construction is expected
to cost 50,000,000. It is expected to be completed within two years
on June 30 year 7. In a special meeting held on July 2 year 5, the
members of the town council approved a 30,000,000 issue of General
Obligation Bonds maturing in 20 years. The proceeds of this sale
will be used to help finance the construction of the new library.
The remaining 20,000,000 will be financed by an Irrevocable State
Grant that has been awarded. The following transactions occurred
during the fiscal year ended June 30 year 6.
The following transactions related to the town of NN
Library Capital Projects Fund occurred during the fiscal beginning
July 1 Year 6 and ending June 30, Year 7.
The following transactions and events take place after
the construction has finished
Required:
Prepare all necessary journal entries financial
reports
Case II: Assume that in 2001 the governing body
of a governmental unit decided to contract bridge accepted to cost
$3,000,000. The bridge construction and related costs are to be
financed as follows; federal grant, $ 1,200,000; State grant $
600,000; Bond issue proceeds $ 900,000; transfer from general fund
$ 300,000.
The bridge is to be constructed by private contracting firm,
Bean bridge builders, Inc. The estimated cost of the bridge project
is; contract $2,400,000; Labor $ 300,000; machine time $ 200,000;
Fuel and materials $100,000.
Required: Prepare necessary
journal entries and financial reports