Cuyahoga County Plans to Build a New Courthouse in 2021

Essay

Cuyahoga County plans to build a new courthouse in 2021 and sets up a capital projects fund to record activities related to its construction. All of the resources of the capital projects fund are restricted by external entities. The following events are recorded in the capital projects fund in 2021:
•Total cost of the project is budgeted to be $750 million, and the county records a budget for the project. The funding is as follows:
o State grant, $250 million
o Bonds, $500 million
•The state grant is accrued, and $200 million is received in cash. The remaining $50 million is expected to be received within 60 days of year-end.
•The general fund provides temporary financing to the capital projects fund in the amount of $40 million.
•The bonds are issued for $501 million. The extra $1 million is paid to the debt service fund.
•The capital projects fund repays $38 million to the general fund and expects to pay back the remaining $2 million within 60 days of year-end.
•Excess cash of $300 million is invested in low-risk securities. Income received in cash from investments is $8 million, of which $6.5 million is paid to the debt service fund. Income earned but not paid as of year-end is $0.5 million, but it is not expected to be received in cash until 6 months after year-end. The investments are worth $310 million at year-end.
•Contracts totaling $700 million are awarded, and contractors submit bills for $400 million during the year. The county has paid $375 million of the bills in cash by year-end.
Required
Prepare the 2021 operating statement and 2021 year-end balance sheet for the capital projects fund, in proper format. Display all dollar amounts in millions.