n Wilayat ‘L’, the Parks and Recreation Department constructed a library in one of the county’s high growth areas. The construction was funded by a number of sources. Below is selected information related to the funding and closing of the Library Capital Project Fund. All activity related to the library construction occurred within the 2016 fiscal year. i. The county issued OMR 12,000,000, 8 percent bonds, with interest payable semiannually on June 30 and December 31. The bonds sold for 101 on July 30, 2015. Proceeds from the bonds were to be used for construction of the library, with all interest and premiums received to be used to service the debt issue. ii. A OMR 1,300,000 federal grant was received to help finance construction of the library. iii. The Library Special Revenue Fund transferred OMR 500,000 for use in construction of the library. iv. A construction contract was awarded in the amount of OMR 13,60
n Wilayat ‘L’, the Parks and Recreation Department constructed a library in one of the county’s high growth areas. The construction was funded by a number of sources. Below is selected information related to the funding and closing of the Library Capital Project Fund. All activity related to the library construction occurred within the 2016 fiscal year. i. The county issued OMR 12,000,000, 8 percent bonds, with interest payable semiannually on June 30 and December 31. The bonds sold for 101 on July 30, 2015. Proceeds from the bonds were to be used for construction of the library, with all interest and premiums received to be used to service the debt issue. ii. A OMR 1,300,000 federal grant was received to help finance construction of the library. iii. The Library Special Revenue Fund transferred OMR 500,000 for use in construction of the library. iv. A construction contract was awarded in the amount of OMR 13,60
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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7. In Wilayat ‘L’, the Parks and Recreation Department constructed a library in one of the county’s high growth areas. The construction was funded by a number of sources. Below is selected information related to the funding and closing of the Library Capital Project Fund. All activity related to the library construction occurred within the 2016 fiscal year.
i. The county issued OMR 12,000,000, 8 percent bonds, with interest payable semiannually on June 30 and December 31. The bonds sold for 101 on July 30, 2015. Proceeds from the bonds were to be used for construction of the library, with all interest and premiums received to be used to service the debt issue.
ii. A OMR 1,300,000 federal grant was received to help finance construction of the library.
iii. The Library Special Revenue Fund transferred OMR 500,000 for use in construction of the library.
iv. A construction contract was awarded in the amount of OMR 13,600,000.
v. The library was completed on June 1, 2016, three months ahead of schedule. Total construction expenditures for the library amounted to OMR 13,780,000. When the project was completed, the cost of the library was allocated as follows: OMR 400,000 to land, OMR 12,590,000 to building, and the remainder to equipment.
Required
Make all necessary entries in the capital projects fund general journal and the governmental activities general journal at the government-wide level.
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