On June 1, 2020, the City of Cape May authorized the construction of a police station at an expected cost of $250,000. Financing will be provided through transfers from a Special Revenue Fund. The following transactions occurred during the fiscal year beginning June 1, 2020, relating to the Capital Project Fund. 1. The $250,000 receivable from the Special Revenue Fund was recorded. 2. The Special Revenue Fund transferred $125,000 to the Capital Project Fund to begin construction on the police station. 3. The Capital Project Fund invested the transfer of monies in a six-month certificate, at 5%. 4. A contract in the amount of $250,000 was let to the lowest bidder. 5. Architect and legal fees in the amount of $3,125 were approved for payment. There was no encumbrance for these expenditures. 6. Contract billings in the amount of $250,000 were approved for payment on the completion of the police station and the encumbrance was removed. 7. The six-month certificate was redeemed at maturity with interest revenue. 8. The Special Revenue Fund transferred the final amount of $125,000 to the Capital Projects Fund. 9. All liabilities except for the retention of 5% of the contract price were paid. 10. All requirements and obligations were completed; the final payment of the contract price was made and all nominal accounts were closed. Required: Prepare the journal entries necessary in the Capital Projects Fund to record the transactions and events described above. Do not give answer in image
On June 1, 2020, the City of Cape May authorized the construction of a police station at an expected cost of $250,000. Financing will be provided through transfers from a Special Revenue Fund.
The following transactions occurred during the fiscal year beginning June 1, 2020, relating to the Capital Project Fund.
1. The $250,000 receivable from the Special Revenue Fund was recorded.
2. The Special Revenue Fund transferred $125,000 to the Capital Project Fund to begin construction on the police station.
3. The Capital Project Fund invested the transfer of monies in a six-month certificate, at 5%.
4. A contract in the amount of $250,000 was let to the lowest bidder.
5. Architect and legal fees in the amount of $3,125 were approved for payment. There was no encumbrance for these expenditures.
6. Contract billings in the amount of $250,000 were approved for payment on the completion of the police station and the encumbrance was removed.
7. The six-month certificate was redeemed at maturity with interest revenue.
8. The Special Revenue Fund transferred the final amount of $125,000 to the Capital Projects Fund.
9. All liabilities except for the retention of 5% of the contract price were paid.
10. All requirements and obligations were completed; the final payment of the contract price was made and all nominal accounts were closed.
Required: Prepare the
Do not give answer in image
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