DEBT SERVICE FUND: Serial Bond Example Background. The Town of Brighton volen apped a case to add an Simion to the local fire station expected to cont 2.320.000 dice in Chapter 5) Aspartial financing of the project, the town issued regular serial bonds maturing is equal anual amounts over 20 years. The tal face value of the bead was $2.320,000 barang interest of 916.puble mully on June 13 and December is. The band me dated red sold chine 103 and the first principal payment will be due on June 15, 2023. The mancing of the bond will come to a special talex tex.roceeded and dilected directly in the debe service find and 525,000 to be transferred from the Station Capital Projects und Red Bookmal entries for the following mo INTEREST CALCULATION YEAR 1. Calculate the semiannual interest wymonts on the bond 2. The special sales tax for de service is estimated to producers or 55.000 and the transfer of 25.000 is expected to be received from the fire station capital projects fund. One inter payment will be made Record the operating budget for the year coding December 31, 2002 Debe Service and Gualties Sales tax revenues in the amount of $3.500 are collected in cash Dele Service und Godine 4. The Fire Statice Capital Projects Fund transferred $25,000 of residual equity to the debe service und Date Service and Gal Activities 5.On December 15, 2023, the first interest payment is legally dut, and checks totaling SSR are written to the registered owners of the bride Dale Service and General As of December 31, 2002, all badgetary and operating statement accounts are dosed to and Balance-Rextrided (Date Service und only. Interest was your end, as applicable. Dar Service Fund Governadines 2. INTEREST CALCULATION YEAR 2. Calculate al intercal payments that will be made in year 2 NOTE: An amortization schedule will be helpful with this calculation Der Service und Gormal Activities X BUDGET YEAR 2 The special sales tax for det service intimated te produce revenues of Sus 500 and two and one principal payment will be made. Record the operating budget for the year ending December 31, 2021 Del Send Fund GA Sales tax revenues in the amount 5233,400 are collected Sensei Gostali 10. Os June 15, 2003. ista principal payments were made to beholder Del Sul Governmental Active 1. On the theme hobile Dude Sant Funt Gewal Activities 12 of December 1, 22, wyporting to s dodace Reside Smit only interest w cred year-end, licable ServeFun Geral Activities Chapter 6 DEBT SERVICE FUND: Term Bond Example Background The Town of the womalaman etimit the local festation expected to 1.500 sed in Chapter 5 As partul financing of the project, the to be maturing in 5 year. The bal face value of the best was $100.000 beurang interest of payable semanal Jury and Jay Ianunkin fundam sarem per your The bonds were dated and sold on January 1, 2002. The financing of de bond will come from transfers from the General und somi urally for interest one day prior to the due date and my fouinking and investments on December 31st ceeding to the whole believe Sieking Fund Am Take Required Estimated Estimated Estimated Yer Adi Earnings last Fra Han 511 S. 2003 $17,39 1.217 S. $35.95 2004 $17359 2430 SI $ 55.0 2025 $17.9 393352430 $ 73204 20.26 $12,39 04 $22,794 $100.000 Ra Bookjemalces for the following Record the operating for the year ending the 1.20 DS 2. Cash was received the talente me permet Dede Sint 3. Checks were written and mailed for the July 1.2022 resten Der Service Find Cele 4 Cashtreceived from the timetal kunden Doce 1.2002 the upcoming king and under De Service The sinking fund investment is made on December 30, 2003 SP Aatu) & As of December 31, 2002, all bowy od portiam dud toond lace Restricted Debt Seicent GA BUDGET YEAR. Hoond the operating role for the you maling December 31, 201 Luht Sie * Checks were writion and maid for the way L.2003 Durice 8. Checks were written and maited for the January 1, 2003 m payment Del Sicer Goverwalter Coah wantederved from the General Fusce June 30, 303 interest payment Der Server Gal Aether 10. Checks were windmiled for the day. payment Dude Sorel Goral Art Il Cash was received from the General and on December 23 the upcoming sinking findeyment terest Der Service and Gestul Activities 12. The sking fund investment is made on December 31,300 Gerial Activities 13. Imoment catings in 2003 were $1.517 compared with amount of 51,219, 5300 ore than expected Del Sol Gol Active 13 As of 1.2023. all badpetary and operating ons are chose to Funil Balance-Rested Date Sun Gol A DEBT SERVICE FUND: Serial Bond Example Background: The Town of Brighton voters approved a measure to add an extension to the local fire station expected to cost $2,520,000 (as discussed in Chapter 5). As partial financing of the project, the town issued regular serial bonds maturing in equal annual amounts over 20 years. The total face value of the bond was $2,320,000 bearing interest of 5%, payable semiannually on June 15 and December 15. The bonds were dated and sold on June 15, 2022 and the first principal payment will be due on June 15, 2023. The financing of the bond will come from a special sales tax recorded and collected directly in the debt service fund and $25,000 to be transferred from the Fire Station Capital Projects Fund. Required: Book journal entries for the following transactions: 1. INTEREST CALCULATION YEAR I: Calculate the semiannual interest payments on the bond. 2. The special sales tax for debt service is estimated to produce revenues of $55.000 and the transfer of S25,000 is expected to be received from the fire station capital projects fund. One interest payment will be made. Record the operating budget for the year ending December 31, 2022: Debt Service Fund: Governmental Activities: 3. Sales tax revenues in the amount of $52,500 are collected in cash. Debt Service Fund: Governmental Activities: 4. The Fire Station Capital Projects Fund transferred S25,000 of residual equity to the debt service fund. Deht Service Fund 4. The Fire Station Capital Projects Fund transferred S25,000 of residual equity to the debt service fund. Debt Service Fund s Governmental Activities: 5. On December 15, 2022, the first interest payment is legally due, and checks totaling $58,000 are written to the registered owners of the bonds. Debt Service Fund: Governmental Activities: 6. As of December 31, 2022, all budgetary and operating statement accounts are closed to 'Fund Balance-Restricted' (Debt Service Fund only). Interest was accrued at year-end, as applicable. Debt Service Fund Governmental Activities: 7. INTEREST CALCULATION YEAR 2: Calculate total interest payments that will be made in year 2. NOTE: An amortization schedule will be helpful with this calculation Debt Service Fund: Governmental Activities: 8. BUDGET YEAR 2: The special sales tax for debt service is estimated to produce revenues of S235,500 and two interest and one principal payment will be made. Record the operating budget for the year ending December 31, 2021. Debt Service Fund: 9. Sales tax revenues in the amount of $233,400 are collected in cash. Debt Service Fund