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 longterm construction projects in a capital projects fund.

• On July 1 it issued 10year, 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 3.8 percent (semiannual rate of 1.9 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 shortterm federal securities. During the year it received $8,000 in interest, and at yearend 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.
• Wht amount should Luling report in its December 31, 2021, financial statements as:

1. Nonreciprocal transfersin to its debt service fund
2. Interest expenditure in its debt service fund
3. Interest expense on its governmentwide statements (after taking into account amortization of the bond premium)
4. Investment revenue in its capital projects fund
5. Bonds payable in its capital projects fund
6. Total expenditures in its capital projects fund
7. Bond proceeds in its capital projects fund
8. Bond proceeds in its debt service fund
9. Deferred outflow of resources (loss on defeasance) in its debt service fund
10. Grant revenue in its capital projects fund
11. Grants receivable in its capital projects fund
12. Carrying value of bonds payable (on issue of July 1 only) in its governmentwide statements

chose each response from the amounts that follow. An amunt may be slected once, more than once, or not at all.

1. $0
2. $8,000
3. $9,000
4. $16,510
5. $19,314
6. $20,000
7. $26,510
8. $38,627
9. $150,000
10. $200,000
11. $400,000
12. $405,000
13. $500,000
14. $600,000
15. $610,000
16. $1,000,000
17. $1,006,510
18. $1,016,510
19. $1,015,824