Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Following are a number of unrelated transactions for the Village of Centerville, some of which affect governmental activities at the government-wide level. None of the

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Following are a number of unrelated transactions for the Village of Centerville, some of which affect governmental activities at the government-wide level. None of the transactions have been recorded yet. Required Prepare in general journal form the necessary entries in the governmental activities and appropriate fund journals for each transaction (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) Answer is complete but not entirely correct. Fund Transaction Governmental General Journal Debit Credit Activies 1. The General Fund collected and transferred $750,000 in tax collections to the debt service fund; $600,000 of this amount was used to retire outstanding serial bonds and the remainder was used to make the interest payment on the outstanding serial bonds. 1a General Fund Record the receipt of cash from tax collections Cash 750,000 Revenues 750,000 1b Record the transfer of cash collected from taxes to the debt service fund. Other Financing Uses interfund Transfers Out tc Debt Service Fund Record the transfer of cash collected from taxes to the debt service fund. Cash Other Financing Sources--Interfund Transfers In 750,000 750,000 1d Record the payment of principal and interest to retire the bonds, Expenditures-Principal Expenditures --Interest Cash 600,000 150,000 750,000 le Governmental Activities Record the receipt of cash from tax collections. Cash 750,000 Other Financing Sources--Interfund Transfers in 750,000 11 Record the payment of principal and interest to retire the bonds. Expenses-Interest on Long-term debt Other Financing Sources - Premium on Bonds Payable Cash 600,000 150,000 750,000 3. The debt service fund made a $110,000 lease payment, of which $15,809 was interest. Funds used to make the lease payment came from a capital grant received by the special revenue fund. Special Revenue Fund Record cash received as capital grant. Cash 110,000 Revenues 110,000 3b Record the transfer of fund for lease payment to the debt servita fund. Other Financing Uses--Interfund Transfers Out Cash 0 110,000 110,000 3c Debt Service Fund Record the transfer of fund for lease payment from the special revenue fund, Cash 110,000 Other Financing Sources-Interfund Transfers In 110,000 3d Record the principal and interest on lease paid. Expenditures Principal Expenditures--Interest 15,809 94,191 Cash 110,000 4. Tax-supported serial bonds with a $3,500,000 par value were issued in cash to permit refunding of a $3,500,000 par value issue of term bonds. Assume that the term bonds had been issued several years earlier at par. 4a Debt Service Fund Record the issue of tax-supported serial bonds for partial refund of term bonds. Cash 2,800,000 Other Financing Sources - Proceeds of Refunding Bonds 2,800,000 4b Record the refund of the par value bonds. Other Financing Uses-Refunded Bonds Cash $ 3,500,000 3,500,000 40 Governmental Activities Record the issue of tax-supported serial bonds for partial refund of term bonds. Cash 2,800,000 Serial Bonds Payable 2,800,000 4d Record the refund of the par value bonds. Term Bonds Payable Cash 3,500,000 3,500,000 6. A $5,000,000 issue of construction bonds were sold at par by the capital projects fund. Debt issuance costs included administrative fees of $45,000 and prepaid insurance costs of $5,000. Capital Projects Record the issue of construction bonds. Fund Cash 5,000,000 Other Financing Sources - Proceeds of Bonds 5,000,000 6b Record the debt issuance costs Expenditures-Debt issuance cost Cash 50,000 50,000 6c Governmental Activities Record the issue of construction bonds. Cash Expenditures-Debt issuance cost 5,000,000 5,000,000 6d Record the debt issuance costs. Cash Expenditures---Debt issuance cost Other Financing Uses-Proceeds of Refunding Bonds xxx 45,000 5.000 50,000

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

Using Microsoft Excel And Access 20 For Accounting

Authors: Glenn Owen

5th Edition

133751229X, 9781337512299

More Books

Students also viewed these Accounting questions

Question

Explain the causes of indiscipline.

Answered: 1 week ago

Question

Explain the factors influencing wage and salary administration.

Answered: 1 week ago