Part A: Robinson County formulated a construction plan for a new public health clinic and library during fiscal year 20X7. Voters approved to spend $32 million on the new project: $30,000,000 from tax-supported bonds, $1,000,000 from an economic stimulus grant, and the remainder from future use revenues. Robinson County determined 34.375% of the total funding is required to build the library; therefore, the remainder could be used on the public health clinic. Required: Evaluate the steps required to complete each of the following transactions in the Robinson County Construction Fund and the governmental activities general journal at the government-wide level. Explain why each journal entry is necessary and whether it pertains to a fund or a governmental activity. 1. Bond anticipation notes were issued for $100,000 at 6% to cover preliminary planning and engineering expenses. 2. Architecture and engineering costs were incurred in the amount of $60,000. They were split evenly between the two projects. Entered into a construction contract for $32 million—$21 million was for the public health facility and $11 million was related to the library. 3. $30 million, 20-year 5% bonds were issued at 101. Record the premium in debt service fund. Bond anticipation notes were paid off after being outstanding for 180 days. Apply interest to the capital projects fund as an expenditure. 4. The contractor received an invoice for $16 million: $10 million for public health facility and $6 million for the library. 5. Although there was no guarantee received by the grantor for the 20X8 portion of the grant funds, half was received in cash. 6. An initial construction invoice was received minus a 5% reduction. 7. A final invoice for the remaining $5 million was received after completion of the library. Library construction can be capitalized as buildings. 8. Inspection was completed on the library and total balance of invoices was paid. 9. Although the public health facility was not complete, the contractor sent another bill at the end of the year bill for $7.5 million. 10. Assuming all fund balances are restricted, close temporary accounts at year-end. How would you design the Robinson County’s government-wide statements of net position and activities to show the capital expenditures for the public health clinic facility and library? Capital project funds vary in size, but usually have similar key components including capital asset acquisition, maintenance, depreciation, impairment, and disposition. Robinson County prepares their year budget before the end of 20X7. Robinson County considers several other major capital projects, for example, a new fire station and a recreational facility. To get these items added to the capital projects fund, the County must prepare estimates for these transactions in the upcoming year. Prepare the journal entries for each of the following estimated transactions to submit for approval to the City Manager. Robert Lee sent the City Manager a letter stating his intention to donate land with a fair value of $2,000,000 for the development of a new fire station and recreational facility. Robinson County could sell their outdated treadmills to get $5,010 towards new treadmills in the new recreational facility. The historical cost of the equipment was $32,400 and it is fully depreciated. The City Manager discovered the new equipment was not compatible with the old technology, which allowed the treadmills to connect to kindle, Netflix, and YouTube during workouts. Once the treadmills were sold, this would result in an impairment loss of $52,000. Part B: Case Study – The Expert Witness Dilemma https://hbsp.harvard.edu/tu/9dbc59a6 Answer the questions following case questions: What is an infrastructure asset? Would a sewer system have many of those and if so, what would they be? What reasonable arguments do you think the County’s attorneys could make using the capitalization rules related to infrastructure assets using the modified approach as outlined in GASB 34 to support the inclusion of certain infrastructure-related expenses in the operating expense classification rather than the capital expenditure classification? Based on your study of governmental accounting, what is the difference between general obligation debt and special revenue debt of a governmental entity? Why would the difference be important to the bondholders of the Jefferson County sewer debt and the county? Paper Requirements: Submit your responses to the questions in a 3-5-page Microsoft Word document. Label Part A and Part B clearly in your paper.
https://essayhelpgurus.com/wp-content/uploads/2020/02/logo-300x60.png 0 0 Lucky https://essayhelpgurus.com/wp-content/uploads/2020/02/logo-300x60.png Lucky2020-06-08 07:48:392020-06-08 07:48:39Include computations in a table and show work. For written answers, ensure your responses are well-written. Be sure to follow the formatting guidelines outlined in the CSU-Global Guide to Writing and APA.