I need help solving the second part of this Chapter on Smithville. (Starting with [6-d-1]) Please only use these accounts for the Street Improvement Bond Debt Service: Cash Taxes Receivable - Current Allowance for Uncollectible Current Taxes Taxes Receivable - Delinquent Allowance for Uncollectible Delinquent Taxes Interest and Penalties Receivable on Taxes Allowance for Uncollectible Interest and Penalties Investments Interfund Loans Payable - Current Fund Balance - Restricted Budgetary Fund Balance Estimated Revenues - Taxes Estimated Revenues - Interest and Penalties on Taxes Estimated Revenues - Investment Income Estimated Revenues - Accrued Interest on Bonds Sold Estimated Revenues - Change in Fair Value of investments Estimated Other Financing Sources - Premium on Bonds Estimated Other Financing Sources - Interfund Transfers In Revenue - Taxes Revenue - Interest and Penalties on Taxes Revenue - Investment Income Revenue - Accrued Interest on Bonds Sold Revenue - Change in Fair Value of Investments Other Financing Sources - Premium on Bonds Other Financing Sources - Interfund Transfers In Appropriations Expenditures - Bond Interest Expenditures - Bond Principal

And for the Governmental Activities, Government-Wide Journal Entries: Cash Taxes Receivable - Current Allowance for Uncollectable Current Taxes Taxes Receivable - Delinquent Allowance for Uncollectible Delinquent Taxes Interest and Penalties Rec. on Taxes Allowance... Due from State Government Accrued Sales Taxes Receicevable Interest Receivable on Investments Internal Receivable from business - type activities Inventory of Supplies Investments Land Improvements other than land Accumulated Depreciation - Improvements other than land Infrastructure Accumulated Depreciation - Infrastructure Buildings Accumulated Depreciation - Buildings Equipment Accumulated Depreciation - Equipment Construction in Progress Defferred Outflow of Resources Vouchers Payable Tax Anticipation Notes Payable Due to Federal Government Contracts Payable Contracts Pay. - Retained % Accrued Interest Pay. on L-T Debt Judgements Payable Internal Payables to Business-Type Activities Current Portion of L-T Debt Defferred Serial Bonds Payable Premium on Defferred Serial Bonds Payable Defferred Inflow of Resources - Property Taxes Defferred Inflow of Resources- Operating Grants and Contributions Net Position - Net Investment in Capital Assets Net Position - Restricted for Public Safety Net Position - Restricted for Capital Projects Net Position - Restricted for Debt Service Net Position - Unrestricted Program Revenues - General Gov. - Charges for Services Program Revenues - Public Safety - Charges for Services Program Revenues - Public Works - Charge for Services Program Revenues - Health and Welfare - Charge for Services Program Revenues - Culture and Recreation - Charge for Services Program Revenues - Culture and Recreation - Operating Grants and Contributions Program Revenues - Public Safety - Operating Grants and Contributions Program Revenues - Public Works - Capital Grants and Contributions General Revenues - Taxes - Real Property General Revenues - Taxes - Sales General Revenues - Interest and Penalties on Taxes General Revenues - Misc. General Revenues - Investment Earnings General Revenues - Change in Fair Value of Investments Expenses - General Government Expenses - Public Safety Expenses - Public Works Expenses - Health and Welfare Expenses - Culture and Recreation Expenses - Interest on L-T Debt

And if you could, please use this kind of a layout in the answer section: https://www.chegg.com/homework-help/questions-and-answers/hi-please-nned-help-simithville-project-16th-ed-full-version-instructions--need-post-homew-q8023801 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 2017 are dated January 1, 2017, but were not issued until May 6, 2017. Because bondholders will receive six months of interest on July 1, 2017 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, 2017. 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, 2022), and $100,000 is to mature January 1 of each year thereafter until all the bonds issued in 2017 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 2018. As the bond issue did not occur until May 2017, the city will not levy debt service property taxes until next year.

a. Prepare general journal entries, as necessary to record the transactions described below 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 2017 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.

Before closing the City of Smithville, click on [File], and [Save/Save As] to save your work. If you close the file by clicking on the [X] box you will be asked if you want to save your changes before closing.

[Para. 6-a-1] In early May 2017, an amendment to the annual budget for 2017 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 $42,000 for the premium on bonds sold, estimated other financing sources of $10,000 for a transfer from the General Fund that will be used to help pay interest due on January 1, 2018, 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 2017. (The payment that is due on July 1, 2017.)

Required: Record the budget for the Street Improvement Bond Debt Service Fund for year 2017. Budgetary entries have no effect on the government-wide accounting records.

[Para. 6-a-2] On May 6, 2017, the premium and accrued interest on bonds sold were received by the Street Improvement Bond Debt Service Fund. (See Transaction 5-a-7 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-a-7.

[Para. 6-a-3] The July 1, 2017, interest payment was made in the amount of $40,000. (Note: Since you credited ExpenseInterest on Long-Term Debt for $28,000 in 5-a-7 in the governmental activities general journal you can record the full July 1, 2017, 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 Deferred Serial Bonds Payable for the period the bonds have been outstanding (May 6 to July 1) is $585. (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-a-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 from the July 1 interest payment until the end of the fiscal year, December 31, 2017. For this entry, assume that the appropriate amount of amortization of the Premium on Deferred Serial Bonds Payable is $1,750. (Recall that interest is not accrued for the period July 1 to December 31, 2017 in the debt service fund as no appropriation exists for this expenditure and the interest is not due this fiscal year.)

[Para. 6-a-5] To permit payment of the $40,000 interest payment due on January 1, 2018, the Street Improvement Bond Debt Service Fund received $10,000 from the General Fund. That amount together with available cash balance in the debt service fund will be sufficient to cover the January 1, 2018, interest payment.

Required: Record the interfund transfer 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 2017. Operating statement accounts should be closed to Fund BalanceRestricted. 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.)

b. Go to [File/Export] and export Excel files of the pre-closing and post-closing trial balances for the Street Improvement Bond Debt Service Fund as of December 31, 2017, and use them to prepare a balance sheet; statement of revenues, expenditures, and changes in fund balances; schedule of revenues, expenditures, and changes in fund balancesbudget and actual for the Street Improvement Bond Debt Service Fund.

[Note: Retain all required printouts in your cumulative folder until directed by your instructor to submit them, unless your instructor specifies submission of files electronically, in which case you will need to save a .pdf version of your trial balance.]

c. As given later in Chapter 8 of this project, the assessed valuation of property within the City of Smithville is $314,727,270. 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, 2017, rounding the debt limit to the nearest whole dollar (see Illustration 6-3 for an example). A note at the bottom of the schedule should disclose that $40,000 of restricted fund balance in the debt service fund is restricted for payment of interest rather than principal repayment and therefore should be excluded from your schedule. In addition, the note should disclose the bonds authorized but unissued, as described in the introductory paragraph of Chapter 5 of the City of Smithville cumulative problem. This will inform the reader that additional debt issuances are pending.

Fiscal year 2018 Transactions:

d. On January 2, 2018, 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 3.5 percent. These bonds are dated January 1, 2018, 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, 2018; 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, 2019, and in the same amount at each interest payment date thereafter until all bonds of the 2018 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 2018 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 2018. Keep in mind that these transactions will not affect the 2017 financial statements that will be prepared in Chapter 9. Be sure to select 2018 in the [Year] menu.

[Para. 6-d-1] On January 2, 2018, the Street Improvement Bond Debt Service Fund budget for 2018 is legally adopted. The budget should provide 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, 2022 for the 4% deferred serial bonds. The budget should include estimated investment earnings of $3,000 during 2018. Property tax revenues are intended to help pay $80,000 interest due during 2018 on the 4% deferred serial bonds (due January 1 and July 1), as well as the $52,500 interest payment that will be due on the 3.5% serial bonds on July 1, 2018. The property tax levy will also provide resources to help pay interest of $92,500 due on January 1, 2019 ($40,000 interest on the 4% deferred serial bonds and $52,500 on the 3.5% serial bonds). No premium or accrued interest on bonds sold is included in the 2018 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 2018 in the general journals for the Street Improvement Bond Debt Service Fund. [As a reminder, you should make journal entries for FY 2018 only in the debt service fund, ignoring any entries for governmental activities at the government-wide level or any other funds.]

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

[Para. 6-d-3] Bond interest due on January 1, 2018 in the amount of $40,000 was paid for the 4% deferred serial bonds.

[Para. 6-d-4] On March 1, 2018, 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 d.), plus $17,500 for two months of accrued interest ($47,500 in total). The $47,500 of premium and accrued interest was invested in temporary investments earning 3 percent per annum.

Required: Prepare journal entries to record the receipt of $47,500 in cash and the subsequent investment. Also, prepare a journal entry to amend the FY 2018 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 $1,187. (Note: You should credit Budgetary Fund Balance for the full $48,687, since the appropriation for the interest payment due on July 1, 2018, was recorded in Paragraph 6-d-1).

[Para. 6-d-5] By June 30, 2018, 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-d-6] Bond interest of $40,000 due July 1, 2018 on the deferred serial bonds issued in 2017 and $52,500 on the 3.5% serial bonds issued in 2018 was paid on that date.

7. [Para. 6-d-7] During the second half of 2018, 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.

8. [Para. 6-d-8] Investment earnings received in cash during the year amounted to $4,187.

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, 2018. For each account closed, be sure and click on the check mark for [Closing Entry] and that Closing Entry appears in the [Transaction Description] box. Post the closing entries to the general ledger by clicking [Post Entries].