Question
Need help with letter E of this question Required information [The following information applies to the questions displayed below.] Residents of Green Acres, a gated
Need help with letter E of this question
Required information
[The following information applies to the questions displayed below.] Residents of Green Acres, a gated community located in the City of Foothills, voted to form a local improvement district to fund the construction of a neighborhood park. The city agreed to administer the bonded debt; however, residents of Green Acres are solely responsible for repaying the bond issue. The following events are related to the special assessment park debt for the current fiscal year:
- On January 1, the city assessed levies totaling $5,000,000 on properties within Green Acres. The levies are payable in 10 equal annual installments due at the end of the fiscal year, beginning in the current year, with 5 percent interest due on unpaid installments.
- All assessments associated with the current years installment were collected by December 31, as was the interest due on the unpaid installments. A portion of assessments receivable equal to next years installment of $500,000 was reclassified as current.
- On December 31, the first principal payment of $500,000 was made to bondholders, as was interest on the debt.
- All additions and deductions were recorded by the custodial fund. Assume that all additions and deductions can be aggregated because resources are held less than three months.
Letter E asks: Record the additions and deductions by the custodial fund.
Journal Entries for letter "E" (Record the additions and deductions by the custodial fund) are:
1. Deductions - Payment of Interest to Bondholders
2. Deductions - Payment of Principal to Bondholders
3. Additions - Principal and Interest Collections
*** I need the amounts corresponding to each entry...
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