Could we please have a solution for Government and Not for profit accounting 5th edition (by Michael H Granof and Saleha B. Khumawala), chapter 6 exercise 3 (1-12)? Question 8 is Bond procees in its debt service fund,

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b. e An economic gain and an a d. Neither an economic gain accounting los An defeasance in its debt service fund . Los o revenue in its capital projects fund Gran receivable in its capital projects fund 1. Gng value of bonds payable (on issue of July 1 and deht mansuctions can affec Lulinbi to in its government-wide statements ineipal. lowing transactions related to utions the Laling Rver. The township ernizsing ed in ntereOn July l tillion. The bonds were sold for h Select each response from the low. An amount may be selected oncs,mount, that fol ing the bridg tion projects in a capital projects fu tbat eba d. $16,510 e. $19,314 f $20,000 g. $26,510 h. $38,627 L SI50,000 j. $200,000 ides an annual yield 16,5 lion c nc $10,000 in issue costs On August I it was awarded a state tei e reimbursement gra o. During the year it incurred aln 0Of these it paid S500,000 inabl e nd Or T received $450,000 from t to h roceive, early in 2013, the S150,000 allowable costs incurred 2. to L $405,000 ence between In loreover, it expects t ceve the balaash rete o. $610,000 p. S1,000,000 late nted the bond proceds in short-term fed lem During the year it received $8,000 in inter e market value of the secrand r. $1,016,510 s. $1,015,824 more than the township had paioh was Si .It transferred the bond premium (net of issue r them. 6-4 It transferred S20,000 from the general fund to Capital projects funds acount for construction for the assets that are being constructed inaedtes t e fund to cover the first payment of bond ia which was due, and paid, on December 31. . On January 1, the township defeased in su S400,000 of bonds that had been issued years earlier to construct the bridge. The bonds had been issued at pat. To effect the transaction the township issued S40,00 The Wickliffe City Council authorizes the restoration of the city library. The project is to be funded by the issuance of bonds, a reimbursement grant from the state, and property taxes. 1. Prepare journal entries in the capital projects fund to bonds, at par, and placed the proceeds in a tust reflect the following events and transactions: a. The city approves (and gives accounting recogni- The old bonds have a coupon rate of 5 percent, the new bonds have a coupon rate of 4 percent. ion to) the project's budget of $9,027,000, of which $6,000,000 is to be funded by general obligation bonds, $2,500,000 from the state, and the remaining S527,000 from the general fund. The city estimates that construction costs will be $8,907,000 and bond issue costs $120,000. What amount should Luling report in its Decem- ber 31, 2012, financial statements as: 1. 2. Interest expenditure in its debt service fund 3. Int Nonreciprocal transfers-in to its debt service fund b. The city issues 9 percent, 15-year bonds that have erest expense on its government-wide statements after taking into account amortization of the bond premium a face value of$6,000,000The bonds are sold for S6,120,000, an amount reflecting a price of $102 The city incurs S115,000 in issue costs; hence, the net proceeds are $6,005,000 . Investment revenue in its capital projects fund 5. Bonds payable in its capital projects fund c. The city transfers the net premium of $5,000 to it debt service fund d. It receives the anticipated $2,500,000 from the stat otal expenditures in its capital projects fund Bond proceeds in its capital projects fund and transfers $527,000 from the general fund