Hatcher Village, which operates on the calendar year, issued a 5-year, 8%, $100,000 note to the Bank

Question:

Hatcher Village, which operates on the calendar year, issued a 5-year, 8%, $100,000 note to the Bank of Hatcher on January 5, 20X4. The proceeds of the note were recorded in a Capital Projects Fund. Interest and one-tenth of the principal are due semiannually, on January 5 and July 5, beginning July 5, 20X4. A DSF has been established to service this debt; financing will come from General Fund transfers and a small debt service tax approved several years ago. The net assets of the fund at year end are not restricted or committed.

Required

a. Prepare the general journal entries (budgetary and actual) needed to record the following transactions and events.

b. Prepare a balance sheet at December 31, 20X4, and a Statement of Revenues, Expenditures, and Changes in Fund Balance for the year then ended for the DSF.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...