Solutiondone 2-234

The following transactions and events relate to the Harmer
Independent
The following transactions and events relate to the Harmer Independent School District High
School Building Capital Projects Fund during 20X6.1. The school board appropriated
$9,000,000 to construct and landscape a new regional high school building to be financed as
follows:Bond issue proceeds . . . . . . . . . . . . . . . . . . . . $6,000,000Federal grant (for 20% of
cost). . . . . . . . . . . 1,800,000State grant . . . . . . . . . . . . . . . . . . . . . . . . . . . . 700,000Transfer
from General Fund . . . . . . . . . . . . . 500,000 $9,000,000All of the financing sources are
restricted to high school construction-related expenditures except the transfer from the General
Fund that was from unassigned General Fund resources. Harmer’s policy is to expend
restricted resources before committed, assigned, or unassigned resources available for the
same purpose. The appropriations made for the high school building were:Structure. . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . $5,000,000Plumbing and heating. . . . . . . . . . . . . . . . . . .
1,800,000Electrical . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,300,000Landscaping. . . . . . . . . . . . .
. . . . . . . . . . . . . . 700,000Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000 $9,000,0002.
Contracts were let to private contractors:Structure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$4,700,000Plumbing and heating. . . . . . . . . . . . . . . . . . . 1,825,000Electrical. . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . 1,300,000 $7,825,000Thus, the plumbing and heating appropriation was
increased $25,000, and the structure appropriation was decreased $300,000.3. Cash receipts
during 20X6 included:Federal grant . . . . . . . . . . . . . . . . . . . . . . . . . . $ 250,000State grant . . . . .
. . . . . . . . . . . . . . . . . . . . . . . 350,000Bond issue proceeds (par $2,000,000). . . . . .
2,020,000Transfer from General Fund . . . . . . . . . . . . . 100,000 $2,720,000The federal grant is
for 20% of actual qualifying costs incurred (expenditure-driven) up to its $1,800,000 maximum,
but the state grant is an outright contribution to the project. The remaining bonds authorized will
be issued as needed, depending on market conditions; and the board authorized only part of
the General Fund transfer but is expected to authorize the remainder during 20X7.4. Invoices
from contractors were received, approved, and vouchered for payment less a 5% retained
percentage:Structure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,000,000Plumbing and heating. . .
. . . . . . . . . . . . . . . . 500,000Electrical. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 700,000Other (not
encumbered) . . . . . . . . . . . . . . . . 50,000 $3,250,0005. The school board borrowed $150,000
for the project on a short-term note from First State Bank of Harmer.6. Cash disbursements
during 20X6 included7. The school board billed the federal government for the balance of its
share of project costs incurred to date. Payment from the federal agency is expected early in
20X7.8. Accrued interest payable on the note at year end was $4,000. Interest expenditures on
this note are considered a project cost (other) but are not reimbursable under terms of the
federal grant.The following transactions and events relate to the Harmer Independent School
District High School Building Capital Projects Fund during 20X7.1. Cash receipts during 20X7
included:Bond issue proceeds (par less $15,000 of bond issue costs) . . . . . . . . . . . . . . . . . . . . .
. . . . . . . $3,985,000Federal grant . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,440,000State grant . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . 350,000Transfer from General Fund. . . . . . . . . . . . . . .
375,000 $6,150,0002. Final invoices from contractors were received, approved, and vouchered
for payment minus a 5% retained percentage:Structure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$2,750,000Plumbing and heating. . . . . . . . . . . . . . . . . . . . . 1,325,000Electrical . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . 600,000Landscaping (not encumbered). . . . . . . . . . . . . 400,000
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The following transactions and events relate to the Harmer

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