P9-7 (Interfund-GCA-GLTL Entries) Prepare all entries that a state or local government should make to record the following transactions and events. 1. A $2,500,000 term bond issue to finance construction of a new bridge was issued at a $35,000 premium. $10,000 of bond issue costs were paid from the proceeds.

2. The bond premium, less the bond issue costs, was transferred to the Debt Service Fund for the term bonds. 3. A $400,000 contribution was paid from the General Fund to the Debt Service Fund: $150,000 for interest payments and $250,000 to provide for future principal payments. 4. Bridge construction expenditures were vouchered, $2,480,000, for improvements. 5. The remaining unused bond proceeds of the Bridge Capital Projects Fund were transferred to the Debt Service Fund for use as needed. 6. Maturing long-term notes payable ($50,000) and interest ($30,000) were paid from a Debt Service Fund. 7. The Police Department entered into a capital lease of equipment with a capitalizable cost of $1,250,000. A $125,000 down payment was made at the inception of the lease. 8. Lease payments of $250,000, including $100,000 interest, were paid. 9. The government pays retiree health care benefits on a pay-as-you-go basis. Payments for the year totaled $400,000. Additionally, based on actuarially determined amounts, there was a $2,800,000 increase in the total OPEB liability during 20X6. (Assume there are no adjustments related to deferred outflows or deferred inflows of resources, and none of the liability is for proprietary or fiduciary activities.) 10. Inspection services were performed (internal services) by a department financed through the General Fund for a capital project and billed to the project, $3,000. 11. Maintenance services of $1,800 (recorded earlier as CPF expenditures) were rendered by construction workers paid from a Capital Projects Fund for a department financed through the General Fund. (Record the recognition of this correction prior to payment.) 12. A 6-month loan of $400,000 to be repaid during the current year was made from the General Fund to the Debt Service Fund. 13. A 2-year loan of $2,000,000 was made from the General Fund to a Capital Projects Fund. 14. A government sold police vehicles for $65,000. The vehicles originally cost $480,000 when purchased and are 80% depreciated. The sale proceeds are unrestricted. 15. Cash payments for claims totaled $2,000,000. The fund liability for claims and judgments increased $100,000, to $225,000. The noncurrent portion of the payable decreased by $335,000.