Residents from the Town of Mountain View authorized a $2,600,000 renovation to their historic town hall on November 15, 2019. Financing for the project consists of $1,200,000 from a 4 percent serial bond issue, $700,000 from a state grant, and $700,000 from the General Fund. Debt service for the serial bonds will be provided by a one-quarter-cent city sales tax imposed on every dollar of sales in the city. The town has a calendar year-end.

Required
Prepare journal entries to record the related transactions in the town’s capital projects fund, debt service fund, and governmental activities at the government-wide level. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

   

   

   

 

Transaction Fund General Journal Debit Credit a. Record the 2020 budget for the Serial Debt Service Fund. Sales taxes of $270,000 are expected to be collected in 2020; the only appropriation is expected to be six months of interest on the serial bond. a Debt Service fund Estimated Revenues Appropriations Budgetary Fund Balance Capital Projects Fund No Journal Entry Required Governmental Activities No Journal Entry Required b. The town transfers $700,000 from the General Fund to a newly established capital projects fund. b Debt Service fund No Journal Entry Required 270,000 24,000 246,000 Capital Projects Fund Cash 700,000 Other Financing Sources-Interfund Transfers In 700,000 Governmental Activities No Journal Entry Required