EX$.6-3$

Construction and debt transactions can affect more than one fund.

During $2021$ 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 projects fund.

On July $1$ it issued $10-$year, $4$ percent bonds with a face value of $$1$ million. The bonds were sold for $$1,016,510,$ an amount that provides an annual yield of $3\mathrm{.}8$ percent $($semiannual rate of $1\mathrm{.}9$ percent$).$ The city incurred $$10,000$ in issue costs.

On August $1,$ it was awarded a state reimbursement grant of $$800,000.$ During the year it incurred allowable costs of $$600,000.$ Of these it paid $$500,000$ in cash to various contractors. It received $$450,000$ from the state, expecting to receive, early in $2022,$ the $$150,000$ difference between allowable costs incurred and cash received. Moreover, it expects to receive the balance of the grant later in $2022.$

It invested the bond proceeds in short$-$term federal securities$.$ During the year it received $$8,000$ in interest, and at year$-$end the market value of the securities was $$1,000$ more than the township had paid for them.

It transferred the bond premium $($net of issue costs$)$ to an appropriate fund.

It transferred $$20,000$ from the general fund to an appropriate fund to cover the first payment of bond interest that was due, and paid, on December $31.$

On January $1,$ the township defeased in substance $$400,000$ of bonds that had been issued years earlier to construct the bridge. The bonds had been issued at par. To effect the transaction the township issued $$405,000$ of new bonds, at par, and placed the proceeds in a trust. The old bonds have a coupon rate of $5$ percent; the new bonds have a coupon rate of $4$ percent.

What amount should Luling report in its December $31,2021,$ financial statements as:

Nonreciprocal transfers$-$in to its debt service fund

Interest expenditure in its debt service fund

Interest expense on its government$-$wide statements $($after taking into account amortization of the bond premium$)$

Investment revenue in its capital projects fund

Bonds payable in its capital projects fund

Total expenditures in its capital projects fund

Bond proceeds in its capital projects fund

Bond proceeds in its debt service fund

Deferred outflow of resources $($loss on defeasance$)$ in its debt service fund

Grant revenue in its capital projects fund

Grants receivable in its capital projects fund

Carrying value of bonds payable $($on issue of July $1$ only$)$ in its government$-$wide statements

Select each response from the amounts that follow. An amount may be selected once, more than once, or not at all.

a$.$ $$0$

b$.$ $$8,000$

c$.$ $$9,000$

d$.$ $$16,510$

e$.$ $$19,314$

f$.$ $$20,000$

g$.$ $$26,510$

h$.$ $$38,627$

i$.$ $$150,000$

j$.$ $$200,000$

k$.$ $$400,000$

l$.$ $$405,000$

m$.$ $$500,000$

n$.$ $$600,000$

o$.$ $$610,000$

p$.$ $$1,000,000$

q$.$ $$1,006,510$

r$.$ $$1,016,510$

s$.$ $$1,015,824$