9. For each of the following transactions relating to the startup of a community pool, determine the fund(s) being affected and prepare the appropriate journal entry for each. Be sure to note the fund type with each journal entry prepared. General obligation bonds are issued at face value of $500,000 to construct a new community pool. Cash of $100,000 is received from a state grant. Grant is set up to support the construction of the community pool. . 1. . 2. . 3. A community fund-raiser by a citizens' group raises $50,000 which is donated to the pool fund, with the restriction placed on it that only earnings are to be used for lifeguard wages, and the principal may not be used until such time as the pool ceases to operate, at which time the principal will revert to the general fund. . 4. Construction is completed and the contractors invoices received, totaling $578,000. The invoices are paid within 60 days. . 5. The balance of funds from the general obligation bonds and state grant that was not used is transferred to the General Fund.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

I need detail and correct 

9. For each of the following transactions relating to the startup of a community pool, determine the fund(s)
being affected and prepare the appropriate journal entry for each. Be sure to note the fund type with each
journal entry prepared.
. 1.
General obligation bonds are issued at face value of $500,000 to construct a new community pool.
Cash of $100,000 is received from a state grant. Grant is set up to support the construction of the
community pool.
.
2.
3. A community fund-raiser by a citizens' group raises $50,000 which is donated to the pool fund, with
the restriction placed on it that only earnings are to be used for lifeguard wages, and the principal may not
be used until such time as the pool ceases to operate, at which time the principal will revert to the general
fund.
. 4.
Construction is completed and the contractors invoices received, totaling $578,000. The invoices are
paid within 60 days.
. 5. The balance of funds from the general obligation bonds and state grant that was not used is
transferred to the General Fund.
Transcribed Image Text:9. For each of the following transactions relating to the startup of a community pool, determine the fund(s) being affected and prepare the appropriate journal entry for each. Be sure to note the fund type with each journal entry prepared. . 1. General obligation bonds are issued at face value of $500,000 to construct a new community pool. Cash of $100,000 is received from a state grant. Grant is set up to support the construction of the community pool. . 2. 3. A community fund-raiser by a citizens' group raises $50,000 which is donated to the pool fund, with the restriction placed on it that only earnings are to be used for lifeguard wages, and the principal may not be used until such time as the pool ceases to operate, at which time the principal will revert to the general fund. . 4. Construction is completed and the contractors invoices received, totaling $578,000. The invoices are paid within 60 days. . 5. The balance of funds from the general obligation bonds and state grant that was not used is transferred to the General Fund.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Fund accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education