Armstrong County established a County Office Building Construction Fund to account for a project expected to take less than one year to complete. The County's fiscal year ends on June 30. On July 1, 2023, bonds were sold at par in the amount of $7,500,000 for the project. On July 5, a contract was signed with the Sellers Construction Company in the amount of $7,390,000. On December 30, a progress bill was received from Sellers in the amount of $5,000,000. The bill was paid, except for the 5 percent retained upon final inspection. On June 1, a final bill was received in the amount of $2,390,000 from Sellers, which was paid, except for the 5 percent retained. An appointment was made between the county engineer and Bill Sellers to inspect the building and to develop a list of items that needed to be corrected. On the day of the meeting, the county engineer discovered that Sellers had filed for bankruptcy and moved out of the state. The City incurred a liability in the amount of $460,000 to have the defects corrected by the Baker Construction Company. (Charge any excess over the balance of Contracts Payable—Retained Percentage to Capital Expenditures.) All accounts (from 5 above) were paid; the remaining cash was transferred to the debt service fund. The accounts of the County Office Building Construction Fund were closed. Required: Record the transactions in the County Office Building Construction Fund for the fiscal year ended June 30, 2024. Prepare a separate Statement of Revenues, Expenditures, and Changes in Fund Balances for the County Office Building Construction Fund.
Armstrong County established a County Office Building Construction Fund to account for a project expected to take less than one year to complete. The County's fiscal year ends on June 30. On July 1, 2023, bonds were sold at par in the amount of $7,500,000 for the project. On July 5, a contract was signed with the Sellers Construction Company in the amount of $7,390,000. On December 30, a progress bill was received from Sellers in the amount of $5,000,000. The bill was paid, except for the 5 percent retained upon final inspection. On June 1, a final bill was received in the amount of $2,390,000 from Sellers, which was paid, except for the 5 percent retained. An appointment was made between the county engineer and Bill Sellers to inspect the building and to develop a list of items that needed to be corrected. On the day of the meeting, the county engineer discovered that Sellers had filed for bankruptcy and moved out of the state. The City incurred a liability in the amount of $460,000 to have the defects corrected by the Baker Construction Company. (Charge any excess over the balance of Contracts Payable—Retained Percentage to Capital Expenditures.) All accounts (from 5 above) were paid; the remaining cash was transferred to the debt service fund. The accounts of the County Office Building Construction Fund were closed. Required: Record the transactions in the County Office Building Construction Fund for the fiscal year ended June 30, 2024. Prepare a separate Statement of Revenues, Expenditures, and Changes in Fund Balances for the County Office Building Construction Fund.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
4.)
Armstrong County established a County Office Building Construction Fund to account for a project expected to take less than one year to complete. The County's fiscal year ends on June 30.
- On July 1, 2023, bonds were sold at par in the amount of $7,500,000 for the project.
- On July 5, a contract was signed with the Sellers Construction Company in the amount of $7,390,000.
- On December 30, a progress bill was received from Sellers in the amount of $5,000,000. The bill was paid, except for the 5 percent retained upon final inspection.
- On June 1, a final bill was received in the amount of $2,390,000 from Sellers, which was paid, except for the 5 percent retained. An appointment was made between the county engineer and Bill Sellers to inspect the building and to develop a list of items that needed to be corrected.
- On the day of the meeting, the county engineer discovered that Sellers had filed for bankruptcy and moved out of the state. The City incurred a liability in the amount of $460,000 to have the defects corrected by the Baker Construction Company. (Charge any excess over the balance of Contracts Payable—Retained Percentage to Capital Expenditures.)
- All accounts (from 5 above) were paid; the remaining cash was transferred to the debt service fund.
- The accounts of the County Office Building Construction Fund were closed.
Required:
-
Record the transactions in the County Office Building Construction Fund for the fiscal year ended June 30, 2024.
-
Prepare a separate Statement of Revenues, Expenditures, and Changes in Fund Balances for the County Office Building Construction Fund.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education