Transaction | Fund / Governmental Activties | General Journal | Debit | Credit |
1. The General Fund collected and transferred $660,000 in tax collections to the debt service fund; $570,000 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. |
1b | | Record the transfer of cash collected from taxes to the debt service fund. |
1c | Debt Service Fund | Record the transfer of cash collected from taxes to the debt service fund. |
1d | | Record the payment of principal and interest to retire the bonds. |
1e | Governmental Activities | Record the receipt of cash from tax collections. |
1f | | Record the payment of principal and interest to retire the bonds. |
2. A $6,600,000 issue of serial bonds to finance a capital project was sold at 106 plus accrued interest in the amount of $66,000. The accrued interest and the premium were recorded in the debt service fund. Accrued interest on bonds sold must be used for interest payments; the premium is designated by state law for eventual payment of bond principal. |
2 | Capital Projects Fund | | | |
| Debt Service Fund | | | |
| Governmental Activities | | | |
3. The debt service fund made a $60,000 lease payment, of which $8,623 was interest. Funds used to make the lease payment came from a capital grant received by the special revenue fund. |
3a | Special Revenue Fund | Record cash received as capital grant. |
3b | | Record the transfer of fund for lease payment to the debt service fund. |
3c | Debt Service Fund | Record the transfer of fund for lease payment from the special revenue fund. |
3d | | Record the principal and interest on lease paid. |
3e | Governmental Activities | Record cash received as capital grant. |
3f | | Record the principal and interest on lease paid. |
4. Tax-supported serial bonds with a $7,300,000 par value were issued in cash to permit refunding of a $7,300,000 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 | 7,300,000 | |
| | Other Financing SourcesProceeds of Refunding Bonds | | 7,300,000 |
4b | | Record the refund of the par value bonds. |
| | Other Financing UsesRefunded Bonds | | |
4c | Governmental Activities | Record the issue of tax-supported serial bonds for partial refund of term bonds. |
4d | | Record the refund of the par value bonds. |
5. Four months prior to year-end, 6 percent special assessment bonds totaling $390,000 were issued to fund a streetlight improvement project in a local subdivision. The bonds are secondarily backed by the village. The first $24,000 installment will be due from property owners six months after the initial bond issuance, but no debt payments are due in the first year. |
5a | Debt Service Fund | Record the issue of special assessment bonds. |
| | Cash | | |
5b | | Record the current and deferred installment receivable from the local subdivision. |
5c | Governmental Activities | Record the issue of special assessment bonds. |
5d | | Record the current and deferred installment receivable from the local subdivision. |
5e | | Record the interest payable on the special assessment debt. |
6. A $6,600,000 issue of construction bonds were sold at par by the capital projects fund. Debt issuance costs included administrative fees of $59,400 and prepaid insurance costs of $6,600. |
6a | Capital Projects Fund | Record the issue of construction bonds. | | |
6b | | Record the debt issuance costs. | | |
6c | Governmental Activities | Record the issue of construction bonds. | | |
6d | | Record the debt issuance costs. | | |