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Part D On December 31, 2020, the town of Topeka issued bonds in the amount of $3,000,000 to fund a special assessment capital project. Proceeds
Part D On December 31, 2020, the town of Topeka issued bonds in the amount of $3,000,000 to fund a special assessment capital project. Proceeds from the bonds will be placed in a capital project fund and will be used to revamp a small bridge leading into a private gated community. Property owners within the gated community are responsible for the debt and will be taxed specifically to repay the debt. a) Record the issuance of the bonds in the Capital Project Fund, assume the town is obligated in the event the property owners benefitting the special assessment default. b) Assume the same facts above, with the exception that Topeka plans to record the bond issue in a Proprietary Fund. Topeka is not obligated in the event of default. c) In the two scenarios above (a and b), which would result in the payment of principal and interest through a Debt Service Fund a. Both a and b b. Neither a orb c. A only d. Bonly
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