ACNT $2330$

PROJECT $1$

Lake Jackson township voters approved construction of a sidewalk for residents at the subdivision. The township issued a $ $800,000,2\%$ bond anticipation note for $6$ months for this construction related to governmental activities. After $6$ months the bond anticipation note is retired using money that the township had in the bank.

Required: A$.$ Prepare the journal entries for the issuing of the bond anticipation note in the capital projects fund and for the governmental activities.

B$.$ Then, prepare the journal entries for the note retirement $($after the $6$ months$)$ in capital projects fund and for the governmental activities.

NOTE: Here is an example of a proper journal entry and do not write debits and credits because credits are indented:

Cash $490,000$

Bond Discount $10,000$

Bonds Payable $500,000$

ACCOUNT TITLES

DEBIT

CREDIT

A

Capital Projects Fund

Governmental Activities

B

Capital Projects Fund

Governmental Activities