Final answer:
When the capital project fund buys treasury bonds, a journal entry is made to reflect the purchase. To record the revenue generated by the bonds and notes, another journal entry is made. For a statement of revenues, expenditures, and change in fund balance, include the revenue, expenditure, and change in fund balance sections.
Step-by-step explanation:
Bond Sale Proceeds and Journal Entries
When the capital project fund (library fund) buys treasury bonds using $150,000 from the GF, the following journal entry can be made:
Debit: Treasury Bonds - $150,000
Credit: Cash - $150,000
This entry reflects the purchase of the bonds.
When the capital project fund decides to take out $150,000 in bonds, the journal entry would be:
Debit: Cash - $150,000
Credit: Treasury Bonds - $150,000
This entry reflects the withdrawal of the bonds.
To record the revenue generated by the bonds and notes, the following journal entry can be made:
Debit: Cash - Revenue Amount
Debit: Bond Interest Receivable - Revenue Amount
Credit: Bond Interest Revenue - Revenue Amount
This entry reflects the revenue earned from the bonds and notes.
It is also important to note that the journal entry for the GF for construction in progress within the capital fund would depend on the specific circumstances and details of the project.
Statement of Revenues, Expenditures, and Change in Fund Balance
A statement of revenues, expenditures, and change in fund balance for the capital project fund can be prepared in good form by including the following:
Revenue Section: Include the revenue earned from the bonds and notes.
Expenditure Section: Include any expenses related to the capital project, such as construction costs.
Change in Fund Balance Section: Calculate the change in fund balance by subtracting total expenditures from total revenues.
This statement will provide a summary of the financial activity within the capital project fund and help track the fund's overall balance.