Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Long-term Liability Transactions. Following are a number of unrelated transactions for the Village of Centerville, some of which affect governmental activities at the government-wide level.

image text in transcribed
Long-term Liability Transactions. 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 has been recorded yet. The General Rind collected and transferred exist750, 000 in tax collections to the debt service fund:exist600, 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. A exist5, 000, 000 issue of serial bonds to finance a capital project was sold at 102 plus accrued interest in the amount of exist50, 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. The debt service fund made a exist110, 000 capital lease payment, of which exist15, 809 was interest. Funds used to make the lease payment came from a capital grant received by the special revenue fund. Tax supported serial bonds with a exist2, 800, 000 par value were issued in cash to permit partial refunding of a exist3, 500, 000 par value issue of term bonds. The difference was settled with exist700, 000 that had been accumulated in prior years in a debt service fund. Assume that the term bonds had been issued several years earlier at par. Four months prior to year-end, 6 percent special assessment bonds totaling exist500, 000 were issued to fund a streetlight improvement project in a local subdivision. The bonds arc secondarily backed by the village. The first exist25, 000 installment will be due from property owners six months after the initial bond issuance, but no debt payments arc due in the first year. Marketable equity securities held by the debt service fund increased in value by exist10, 000 during the year. Required Prepare in general journal form the necessary entries in the governmental activities and appropriate fund journals for each transaction. Explanations may be omitted. For each entry you prepare, name the fund in which the entry should be made

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_2

Step: 3

blur-text-image_3

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

Audit Risk In The Operation Of EDF Financed Projects

Authors: Koffi Rufin Kouame

1st Edition

6205912651, 978-6205912652

More Books

Students also viewed these Accounting questions