Hi: Please I need help with Smithville Project Chapter 6 16th edition full version and al instructions are below. I need to post this homework by tomorrow 08-16-2015. Thank you.

Chapter 6 Transactions Affecting General Long-term Liabilities and Debt Service

The City of Smithville created a Street Improvement Bond Debt Service Fund to be used to retire the bonds issued for the purposes described in Chapter 5 of this cumulative problem, and to pay the interest on the bonds. The $2,000,000 face value of bonds issued during 2014 are dated January 1, 2014, but were not issued until May 6, 2014. Because bondholders will receive six months of interest on July 1, 2014 in the total amount of $40,000, they were required to pay $28,000 on the date of issue to pay the city for unearned interest from January 1 to May 6. The bonds bear interest of 4 percent per annum. The first interest payment of $40,000 is due July 1, 2014. Subsequent semiannual interest payments will be made January 1 and July 1 of each following year until the maturity of the bonds. Bonds in the amount of $500,000 are to mature five years after the date of the bonds (January 1, 2019), and $100,000 are to mature January 1 of each year thereafter until all the bonds issued in 2014 have been retired. Thus, these bonds are deferred serial bonds as discussed in Chapter 6 of the textbook. Make entries as instructed in the following paragraphs.

Bond covenants related to this bond issue require the city to levy property taxes sufficient to make principal and interest payments until the bonds have been retired. The city council has approved a resolution to enable the property tax levy, beginning in fiscal year 2015.

a. Prepare general journal entries, as necessary to record the transactions described in paragraph b in the Street Improvement Bond Debt Service Fund general journal and, if applicable, in the governmental activities general journal. Use account titles listed under the drop down [Account (# - Description)] menu. Be sure the year 2014 is selected from the drop-down [Year] menu and the appropriate paragraph number shown in bold-face font below is in the [Transaction Description] box.

Please remember that before closing the City of Smithville, you must click on [File], and [Save/Save As] to save your work. Your work is NOT automatically saved.

b. Record the transactions below, as necessary.

[Para. 6-b-1] In early May 2014, an amendment to the annual budget for 2014 was approved by the city council for inflows and outflows in the Street Improvement Bond Debt Service Fund related to the bond issue. The debt service fund budget amendment provides for estimated other financing sources of $40,000 for the premium on bonds sold and estimated revenues of $28,000 for accrued interest on bonds sold; and appropriations in the amount of the one interest payment of $40,000 to be made during 2014. (The payment that is due on July 1, 2014.) As the bond issue was not made until May 2014, the city will not levy debt service property taxes until next year.

Required: Record the budget for the Street Improvement Bond Debt Service Fund for year 2014. Budgetary entries have no effect on the government-wide accounting records.

[Para. 6-b-2] On April 1, 2014, the premium and accrued interest on bonds sold were received by the Street Improvement Bond Debt Service Fund. (See Transaction 5-b-5 in the Street Improvement Fund.)

Required: Record this transaction in the debt service fund. No entry is required at this time in the governmental activities general journal since the bond issue, including the related premium and accrued interest, was recorded in the governmental activities general journal in transaction 5-b-7.

[Para. 6-b-3] The July 1, 2014, interest payment was made in the amount of $40,000. (Note: Since you credited ExpenseInterest on Long-Term Debt for $28,000 in 5-b-7 in the governmental activities general journal you can record the full July 1, 2014, interest payment as a debit to Interest Expense, less amortization of the premium.)

Required: Record this transaction in both the debt service fund and the governmental activities general journals. For the entry in the governmental activities journal, assume that the appropriate amount of amortization of the Premium on 4% Deferred Serial Bonds Payable for the period the bonds have been outstanding (May 6 to July 1) is $339. (Note: Although premiums and discounts on bonds issued are not amortized in a debt service fund, they should be amortized at the government-wide level since the accrual basis of accounting is used at that level.)

[Para. 6-b-4] Make the required journal entry in the governmental activities general journal to accrue six months of interest payable on the 4% Deferred Serial Bonds Payable from the July 1 interest payment until the end of the fiscal year, December 31, 2014. For this entry, assume that the appropriate amount of amortization of the Premium on 4% Deferred Serial Bonds Payable is $1,017. (Recall that interest is not accrued for the period July 1 to December 31, 2014, in the debt service fund as no appropriation exists for this expenditure and the interest is not due this fiscal year.)

[Para. 6-b-5] To permit payment of the $40,000 interest payment due on January 1, 2015, the Street Improvement Bond Debt Service Fund borrowed $20,000 from the General Fund. That amount together with available cash balance in the debt service fund will be sufficient to cover the January 1, 2015, interest payment.

Required: Record the interfund loan in the debt service fund journal only. This transaction was previously recorded in the General Fund in Chapter 4 of this problem. The transaction has no effect at the government-wide level since it occurs between two governmental funds.

Verify the accuracy of journal entries, including dates and paragraph numbers, and, if you have not already done so, post all entries to the general ledger of both the Street Improvement Bond Debt Service Fund and governmental activities by clicking on [Post Entries]. Make the entries needed to close the budgetary and operating statement accounts at the end of fiscal year 2014. Make this entry only in the Street Improvement Bond Debt Service Fund journal. Be sure that for each account being closed that the check mark for [Closing Entry] is on and that Closing Entry appears in the [Transaction Description] box. (Note: Closing entries for governmental activities at the government-wide level will be made in Chapter 9 of this cumulative problem.)

c. Go to [Reports] and print the pre-closing and post-closing trial balances for the Street Improvement Bond Debt Service Fund as of December 31, 2014. Retain in your cumulative folder until directed by your instructor to submit them, unless your instructor specifies submission of computer files via e-mail, in which case you will need to save a .pdf version of your trial balance.

d. As given later in Chapter 8 of this project, the assessed valuation of property within the City of Smithville is $303,035,714. Assuming the legal general obligation debt limit is 8 percent of assessed valuation, prepare in good form a schedule showing the legal debt limit, debt outstanding subject to the limit, and the legal debt margin of the city as of December 31, 2014, rounding the debt limit to the nearest whole dollar. (Notes: The $28,000 balance in the Fund BalanceRestricted account is intended for payment of interest rather than principal repayment and, therefore, should be excluded from your schedule. In addition, the bonds authorized but unissued, as described in the introductory paragraph of Chapter 5 of the City of Smithville cumulative problem, should be disclosed at the bottom of your schedule to inform the reader that additional debt issuances are pending.)

Fiscal year 2015 Transactions:

e. On January 2, 2015, the City of Smithville approved the issuance of additional street improvement bonds in the total amount of $3,000,000. The new bonds will be serial bonds and will bear interest at the nominal annual rate of 5 percent. These bonds are dated January 1, 2015, and will be issued during the next few months when the citys bond underwriters believe market conditions are most favorable.

The first interest payment on the new bonds will be due on July 1, 2015; interest will be payable January 1 and July 1 of each following year until maturity. Bonds in the amount of $250,000 will mature on January 1, 2016, and in the same amount each year thereafter until all bonds of the 2015 issue have been retired. To give you some additional practice on accounting for a debt service fund, record the following events and transactions that are presumed to occur in fiscal year 2015 in the Street Improvement Bond Debt Service Fund only. You should ignore entries that would be required in the General Fund and in the governmental activities general journal related to these transactions for fiscal year 2015. Keep in mind that these transactions will not affect the 2014 financial statements that will be prepared in Chapter 9. Be sure to select 2015 in the Year menu.

[Para. 6-e-1] On January 2, 2015, the Street Improvement Bond Debt Service Fund budget for 2015 was legally adopted. The budget provides for estimated property tax revenue of $640,000, of which $120,000 will be invested to accumulate resources over the next four years for the $500,000 principal that will be due for payment on January 1, 2019. The remaining revenues are intended to pay $80,000 interest due during 2015 on the 4% deferred serial bonds, as well as the $75,000 interest payment that will be due on the 5% serial bonds on July 1, 2015. The 2015 property tax levy also provides resources to retire the $250,000 of 5% serial bonds that mature on January 1, 2016, and interest of $115,000 due on that date ($40,000 interest on the 4% deferred serial bonds and $75,000 on the 5% serial bonds). The budget also provides for estimated investment earnings of $3,000 during 2015. No premium or accrued interest on bonds sold is included in the 2015 estimated other financing sources or estimated revenues. If the Street Improvement Debt Service Fund does receive such items, they will be invested and used for eventual bond redemption or interest payments, and the budget will be amended accordingly to reflect such items.

Required: Record the budget for FY 2015 in the general journals for the Street Improvement Bond Debt Service Fund. [As a reminder, you should make journal entries for FY 2015 only in the debt service fund, ignoring any entries for governmental activities at the government-wide level or any other funds.]

[Para. 6-e-2] Property taxes were levied in the amount of $660,000, of which $20,000 was estimated to be uncollectible.

[Para. 6-e-3] Bond interest due on January 1, 2015 in the amount of $40,000 was paid for the 4% deferred serial bonds.

[Para. 6-e-4] On March 1, 2015, the Street Improvement Debt Service Fund received $30,000 of premium from the sale of the additional $3,000,000 street improvement bonds (see first paragraph of section e.), plus $25,000 for two months of accrued interest ($55,000 in total). The $55,000 of premium and accrued interest was invested in temporary investments earning 3 percent per annum.

Required: Prepare the journal entry to record the receipt of $55,000 in cash. Also, prepare a journal entry to amend the FY 2015 budget to reflect the amounts of the premium and accrued interest on bonds sold, including an additional amount for estimated revenues for investment earnings in the amount of $1,375. (Note: You should credit Budgetary Fund Balance for the full $56,375, since the appropriation for the interest payment due on July 1, 2015, was recorded in Paragraph 6-e-1).

[Para. 6-e-5] By June 30, 2015, property taxes had been collected in the amount of $325,000; $200,000 was invested in temporary investments that earn 3 percent per annum.

[Para. 6-e-6] The debt service fund repaid the $20,000 short-term loan it received from the General Fund in December 2014.

[Para. 6-e-7] Bond interest of $40,000 due July 1, 2015 on the 4% street improvement bonds issued in 2014 and $75,000 on the 5% street improvement bonds issued in 2015 was paid on that date.

8. [Para. 6-e-8] During the second half of 2014, property taxes were collected in the amount of $290,000. At year-end, the uncollected amount of current property taxes receivable and related estimated uncollectible amount were reclassified as delinquent. Interest and penalties of $3,600 were also levied, of which $180 was estimated as uncollectible.

Required: Prepare the journal entries to record the receipt of current property taxes, to reclassify the uncollected amount as delinquent, and to accrue the related interest and penalties.

9. [Para. 6-e-9] Investment earnings received in cash during the year amounted to $4,375.

After verifying the accuracy of the preceding entries, post the amounts to the general ledger accounts by clicking [Post Entries]. Prepare closing entries for the Street Improvement Bond Debt Service Fund as of December 31, 2015. Be sure that for each account being closed the [Closing Entry] check mark is on and that Closing Entry appears in the [Transaction Description] box. Post the closing entries to the general ledger by clicking [Post Entries].

f. Export the post-closing trial balance (click on [File]-[Export]) for year 2015 to Excel to prepare a balance sheet for the Street Improvement Bond Debt Service Fund as of December 31, 2015.

g. Export a pre-closing trial balance for year 2015 to Excel to prepare a statement of revenues, expenditures, and changes in fund balance for the Street Improvement Bond Debt Service Fund for the year ended December 31, 2015.

h. Use the same trial balance exported in item g above to prepare a schedule of revenues, expenditures, and changes in fund balancebudget and actual for the Street Improvement Bond Debt Service Fund for the year ended December 31, 2015.

[Note: Retain a printout of all worksheets and your financial statements in your cumulative file until directed by your instructor to submit them, unless your instructor specifies that you should submit computer files via e-mail.]