Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Need help with these journal entries (1-4). All other answers are horribly explained. lol The Sailfish County authorized issuance of $10,000,000, 4 percent regular serial

image text in transcribed

Need help with these journal entries (1-4). All other answers are horribly explained. lol

The Sailfish County authorized issuance of $10,000,000, 4 percent regular serial bonds in 20x0 for construction of a new library. The bonds mature in equal amounts beginning January 1, 20x1 for 10 years and pay interest on January 1 and July 1. The county is required to use all accrued interest and premiums to service the debt. The funds to pay the interest will be transferred from the General fund. The county's fiscal year ends on December 31. Required: 1. The bonds were sold on January 1, 20X0 at 101. Prepare journal entries needed to record issuance of the bonds, including the entries in the debt service fund and any entries required in the governmental activities general ledger at the government-wide level. 2. Prepare the budgetary entry for 20X0 for the debt service fund to record the estimated interest payments to be paid on July 1. 3. Prepare the journal entry for the debt service fund to reflect the transfer of funds from the General Fund to the debt service fund in anticipation of the interest payment due on July 1. 4. Prepare the journal entries needed to record the interest payment made on July 1, including entries required in the debt service fund and any entries required in the governmental activities general ledger at the government-wide level. Assume straight line amortization is used for the premium

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions