6 17 Long-term Liability Transactions. Following are a number of unrelated

transactions for the Village of Centerville, some of which affect governmental

activities at the government-wide level. None of the transactions has been

recorded yet.

1. The General Fund collected and transferred $750,000 in tax collections to

the debt service fund; $600,000 of this amount was used to retire outstand-

ing serial bonds and the remainder was used to make the interest payment on

the outstanding serial bonds.

2. A $5,000,000 issue of serial bonds to finance a capital project was sold at

102 plus accrued interest in the amount of $50,000. The accrued interest and

the premium were recorded in the debt service fund. Accrued interest on

bonds sold must be used for interest payments; the premium is designated

by state law for eventual payment of bond principal.

3. The debt service fund made a $110,000 capital lease payment, of which

$15,809 was interest. Funds used to make the lease payment came from a

capital grant received by the special revenue fund.

4. Tax-supported serial bonds with a $2,800,000 par value were issued in cash

to permit partial refunding of a $3,500,000 par value issue of term bonds.

The difference was settled with $700,000 that had been accumulated in prior

years in a debt service fund. Assume that the term bonds had been issued

several years earlier at par.

5. Four months prior to year-end, 6 percent special assessment bonds totaling

$500,000 were issued to fund a streetlight improvement project in a local

subdivision. The bonds are secondarily backed by the village. The first

$25,000 installment will be due from property owners six months after the

initial bond issuance, but no debt payments are due in the first year.

6. Marketable equity securities held by the debt service fund increased in value

by $10,000 during the year.

Required

Prepare in general journal form the necessary entries in the governmental activ-

ities and appropriate fund journals for each transaction. Explanations may be

omitted. For each entry you prepare, name the fund in which the entry should

be made.