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6-18. Long-Term Liability Transactions. (L06-5) Following are a number of un- related transactions for the Village of Centerville, some of which affect govern- mental activities

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6-18. Long-Term Liability Transactions. (L06-5) Following are a number of un- related transactions for the Village of Centerville, some of which affect govern- mental 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 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 $3,500,000 par value were issued in cash to permit refunding of a $3,500,000 par value issue of term bonds. 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 total- ing $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. A $5,000,000 issue of construction bonds were sold at par by the capital projects fund. Debt issuance costs included administrative fees of $45,000 and prepaid insurance costs of $5,000, Required Prepare in general journal form the necessary entries in the governmental ac- tivities 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

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