Prepare the entries required to record the transactions

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Question - Prepare the entries required to record the following transactions in an Enterprise Fund.

1. Received a grant (in cash) to be used to finance half of the cost of expanding the town's water treatment plant, $15 million. All eligibility requirements have been met.

2. Received a transfer from the General Fund to cover part of the cost of expanding the treatment plant, $10 million.

3. Issued bonds at mid-year at par ($5,000,000) to provide part of the financing for the treatment plant expansion. The bonds bear interest at 6%, payable semiannually.

4. Signed a contract for construction of the plant, $30 million.

5. Received a progress billing from the contractor, $ 18 million.

Reference no: EM132781247

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