Question & Answer: 5-7. a. Armstrong County established a County Office Building Construction Fund to account for a project that was expected to take less than one yea…..

5-7. a. Armstrong County established a County Office Building Construction Fund to account for a project that was expected to take less than one year to complete. The Countys fiscal year ends on June 30. the project. in the amount of $5,900,000. 1. On July 1, 2016, bonds were sold at par in the amount of $6,000,000 for 2. On July 5, a contract was signed with the Sellers Construction Company 3. On December 30, a progress bill was received from Sellers in the amount of $4,000,000. The bill was paid, except for 5 percent retained upon final inspection. 4. On June 1, a final bill was received in the amount of S1,900,000 from Sellers, which was paid, except for the 5 percent retained. An appoint- ment was made between the county engineer and Bill Sellers to inspect the building and to develop a list of items that needed to be corrected. 5. On the day of the meeting, the county engineer discovered that Sellers had filed for bankruptcy and moved out of the state. The City incurred
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5-7. a. Armstrong County established a County Office Building Construction Fund to account for a project that was expected to take less than one year to complete. The County’s fiscal year ends on June 30. the project. in the amount of $5,900,000. 1. On July 1, 2016, bonds were sold at par in the amount of $6,000,000 for 2. On July 5, a contract was signed with the Sellers Construction Company 3. On December 30, a progress bill was received from Sellers in the amount of $4,000,000. The bill was paid, except for 5 percent retained upon final inspection. 4. On June 1, a final bill was received in the amount of S1,900,000 from Sellers, which was paid, except for the 5 percent retained. An appoint- ment was made between the county engineer and Bill Sellers to inspect the building and to develop a list of items that needed to be corrected. 5. On the day of the meeting, the county engineer discovered that Sellers had filed for bankruptcy and moved out of the state. The City incurred

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