Reference no: EM131883254
Question - The following transactions and events occurred in Lanesburg Township in 20x7
1: The township assembly agreed that a new police and fire department building would be constructed at a cost not to exceed $1,500,000, on land owned by the township
2: Cash with which to finance the project was received from the following sources:
Transfer from General Fund: $100,000
State-Federal Grant: 500,000
Bank of Lanesburg (long-term note): 900,000
Total: $1,500,000
The state federal grant is for 1/3 of the project cost, not to exceed $500,000, and any unearned balance must be returned to the state.
3: Cash was disbursed for building projects from the Capital Projects Fund as follows:
Construction Contract: $1,400,000
Architect Fees: 50,000
Engineering Charges: 20,000
Total: 1,470,000
The unearned portion of the grant was refunded to the state, the remaining cash was transferred to the General Fund, and the Capital Projects Fund was terminated.
Required: Prepare general journal entries to record the foregoing facts in the Capital Projects Fund general ledger, assume that the budgetary and subsidiary accounts are not used.