On July 1, 20X5, Rhodes City approved the construction of a new library costing $8,000,000. The project was to be financed with a $4,000,000 general obligation bond issue and a matching state grant.
Required:
Record the following events in the Capital Project Fund for Rhodes City during 20X5.
a.The city estimated that approximately one-fourth of the contract price would be paid for in the current fiscal year and that the bond issue will be sold this year. The project should be completed and the matching grant received next year.
b.The bonds are sold at 102 and premium to be used for future principal payment, forwarded to the Debt Service Fund.
c.A contract was signed to construct the library at a cost of $7,900,000 with a retained percentage of 10% until final inspection at completion.
d.The contractor submits a $1,000,000 progress billing.
e.The books are closed at year end.

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The Answer of On July 1, 20X5, Rhodes City approved the construction of a new library costing $8,000,000. The project was to be financed with a $4,000,000 general obligation bond issue and a matching state grant.
Required:
Record the following events in the Capital Project Fund for Rhodes City during 20X5.
a.The city estimated that approximately one-fourth of the contract price would be paid for in the current fiscal year and that the bond issue will be sold this year. The project should be completed and the matching grant received next year.
b.The bonds are sold at 102 and premium to be used for future principal payment, forwarded to the Debt Service Fund.
c.A contract was signed to construct the library at a cost of $7,900,000 with a retained percentage of 10% until final inspection at completion.
d.The contractor submits a $1,000,000 progress billing.
e.The books are closed at year end.

On July 1, 20X5, Rhodes City Approved the Construction of a New