Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

During the year, Raindrop City engaged in the following transactions. The city has a 12/31 fiscal year end. Record 2. the transactions listed below and

image text in transcribed

During the year, Raindrop City engaged in the following transactions. The city has a 12/31 fiscal year end. Record 2. the transactions listed below and indicate in which fund the entry is made. [9 points] a. On February 1, 2017, the city issued bonds in the amount of $700,000. The bonds sold for 102, and the city incurred $12,000 bonds issuance costs. The proceeds will be used to purchase a warehouse, to store old paperwork and other important city documents. b. On February 17, 2017, the city purchased the warehouse mentioned above for $726,000. c. On March 29, 2017, the city transferred $121,000 to its debt service fund, for the upcoming payment of outstanding bonds' principal and interest. d. On April 1, 2017, the city made payments of $100,000 principal and $21,000 interest on outstanding bonds. e. On September 5, 2017, the city leased a paper-shredding machine. The lease qualified as a capital lease. The terms of the lease required yearly payments, starting next year. The present value of the minimum lease payments is $11,000. During the year, Raindrop City engaged in the following transactions. The city has a 12/31 fiscal year end. Record 2. the transactions listed below and indicate in which fund the entry is made. [9 points] a. On February 1, 2017, the city issued bonds in the amount of $700,000. The bonds sold for 102, and the city incurred $12,000 bonds issuance costs. The proceeds will be used to purchase a warehouse, to store old paperwork and other important city documents. b. On February 17, 2017, the city purchased the warehouse mentioned above for $726,000. c. On March 29, 2017, the city transferred $121,000 to its debt service fund, for the upcoming payment of outstanding bonds' principal and interest. d. On April 1, 2017, the city made payments of $100,000 principal and $21,000 interest on outstanding bonds. e. On September 5, 2017, the city leased a paper-shredding machine. The lease qualified as a capital lease. The terms of the lease required yearly payments, starting next year. The present value of the minimum lease payments is $11,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting A Business Planning Approach

Authors: Noah P. Barsky, Jr. Anthony H. Catanach

2nd Edition

1516506286, 978-1516506286

More Books

Students also viewed these Accounting questions

Question

=+ What are the undesirable consequences?

Answered: 1 week ago

Question

Describe a nested IF statement

Answered: 1 week ago