On 9/1/2014 Birmingham County sold bonds at par value in the amount of $12,000,000 to finance construction of a new library.On 10/10/2014 Hills County entered into a contract with a private contractor to build a new library building in the amount of $11,000,000.On 12/1/2014,when the contract was half finished,the contractor submitted a bill for $5,500,000.The bill was paid on 12/15/2014 less Hills' standard 5% retention to assure any construction deficiencies are corrected.Hills County operates on a Dec.31 fiscal year.
Required:
Prepare the journal entries required in the Capital Projects Fund for the above transactions.

Question

On 9/1/2014 Birmingham County sold bonds at par value in the amount of $12,000,000 to finance construction of a new library.On 10/10/2014 Hills County entered into a contract with a private contractor to build a new library building in the amount of $11,000,000.On 12/1/2014,when the contract was half finished,the contractor submitted a bill for $5,500,000.The bill was paid on 12/15/2014 less Hills' standard 5% retention to assure any construction deficiencies are corrected.Hills County operates on a Dec.31 fiscal year.
Required:
 Prepare the journal entries required in the Capital Projects Fund for the above transactions.

Quizplus · Accepted Answer

The Answer of On 9/1/2014 Birmingham County sold bonds at par value in the amount of $12,000,000 to finance construction of a new library.On 10/10/2014 Hills County entered into a contract with a private contractor to build a new library building in the amount of $11,000,000.On 12/1/2014,when the contract was half finished,the contractor submitted a bill for $5,500,000.The bill was paid on 12/15/2014 less Hills' standard 5% retention to assure any construction deficiencies are corrected.Hills County operates on a Dec.31 fiscal year.
Required:
 Prepare the journal entries required in the Capital Projects Fund for the above transactions.

On 9/1/2014 Birmingham County Sold Bonds at Par Value in the Amount