In 2018, the town of Bayview authorized the construction of two concrete roadways. The public works department estimates the project cost at $400,000, $20,000 of which is transferred from the general fund to the capital projects fund. The balance will be paid for through a special assessments levy on benefiting property owners. On January 1, 2018, $380,000, 4-year, 10% special assessment bonds are issued at face value to finance the property owners’ portion. Payments of $47,500 plus interest are made each June 30 and December 31. The bonds were issued. The town guarantees payment of the debt.Purchase orders totaling $80,000 are issued, and a contract is signed for the estimated $320,000 additional cost of the project. The purchase order was approved by a town official. The contract was approved by formal action of the town council, which is the highest level of authority within the town. Invoices for all purchase orders total $74,000. The actual contract cost is $375,000. Liabilities for these amounts are entered. Except for $30,000 withheld on the contract until final approval, all liabilities related to the completed construction are paid. Bayview does not use budgetary accounts for these projects. Prepare entries in the capital projects fund for these events.
In 2018, the town of Bayview authorized the construction of two concrete roadways. The public works department estimates the project cost at $400,000, $20,000 of which is transferred from the general fund to the capital projects fund. The balance will be paid for through a special assessments levy on benefiting property owners. On January 1, 2018, $380,000, 4-year, 10% special assessment bonds are issued at face value to finance the property owners’ portion. Payments of $47,500 plus interest are made each June 30 and December 31. The bonds were issued. The town guarantees payment of the debt.
Purchase orders totaling $80,000 are issued, and a contract is signed for the estimated $320,000 additional cost of the project. The purchase order was approved by a town official. The contract was approved by formal action of the town council, which is the highest level of authority within the town. Invoices for all purchase orders total $74,000. The actual contract cost is $375,000. Liabilities for these amounts are entered. Except for $30,000 withheld on the contract until final approval, all liabilities related to the completed construction are paid. Bayview does not use budgetary accounts for these projects. Prepare entries in the capital projects fund for these events.
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