(Classification of Financing Sources in Financial Statements)

question 9

Essay

(Classification of financing sources in financial statements)
Martin Township decides to construct a new city hall.Based on the following data,prepare a statement of revenues,expenditures,and changes in fund balance for Martin Township's Capital Projects Fund.All transactions occur within the calendar year 2013.
a.The Fund starts and ends the year with a zero fund balance.
b.The Fund's financing sources for the city hall project were: long-term bond proceeds - $5 million;operating transfer from the General Fund - $2 million;state grant - $1 million;interest from the temporary investment of cash - $70,000.
c.Total outlays for constructing the new city hall were: construction costs - $7,200,000;design and construction supervision fees - $600,000.
d.City laws require that,whenever bonds are used,any remaining difference between total financing sources and construction costs must be transferred to the Debt Service Fund.Therefore,$270,000 was transferred to the Debt Service Fund.

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Definitions:

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one’s preexisting beliefs or hypotheses.

Person Perception

The process by which individuals form impressions of others and make judgments about their characteristics and intentions.

Implicit Personality Theory

The assumption that individuals make unconscious, automatic inferences about the personality traits of others.

Social Psychology

The scientific study of how individuals think, influence, and relate to each other within social contexts.