Prepare closing entries for the Capital Projects Fund
You are a Hometown accountant. The Capital Project Fund has just been created to account for resources received and expended for the construction of a new Health Center. Funding for the Health Center is being provided by a $5,000,000 General Obligation Bond sale, a direct transfer from the General Fund, and a Federal Grant. The grant terms provide that the Federal Government will pay only up to 20% of all project expenditures incurred; unused funds must be returned at the completion of the project.
Required Elements (total 50 points) :
A) (31pts) Journalize the requested transactions for the
a. Capital Project Fund
b. Debt Service Fund
c. General Fund
B) (9pts) Prepare closing entries for the Capital Projects Fund.
C) (10pts) Provide the missing values for the Capital Projects and Debt Service Funds’ financial statements.