Question
During 2010, Luling Township engaged in the following transactions related to modernizing the bridge over the Luling River. The township accounts for long-term construction projects
During 2010, Luling Township engaged in the following transactions related to modernizing the bridge over the Luling River. The township accounts for long-term construction projects in a capital project fund. On 7/1/10, it issued ten-year, 4% bonds with a face value of $1 million. The bonds were sold for $1,016,510, an amount that provides an annual yield of 3.8%. The city incurred $10,000 in issue costs. The premium was transferred to the appropriate account, net of the issue costs. It transferred $20,000 from the general fund to an appropriate fund to cover the first payment of the bond interest which is due, on December 31. The NONRECIPROCAL TRANSFER-IN TO its debt its service fund is?
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