Please complete #6-9.

Chapter 6 Transactions Affecting General I ong-Term Liabilities and Debt Service The City of Bingham utiluzes a single deht service fund to accotint for the service of all issucu of tax-supported and special assessment long-term debt. As of December 31,2022 , one issue of tax-stipported serial bonds was: outstanding See the beginning trial balance for governmental activities - the outatanding balance is classified as the current portion of long-1erm debt The post-clesing trial balance of the debt service fund as of December 31,2022 ; is shown below. A. Record the following aceounts and balances in the debt service fund gencral joumal, selecting 2022 from the [Year] menu and using 6-a for the [Description]. When completed sclect [Post Entries] to post the entries in the general ledgers. [Note: These opening balances were previously recorded in the governmental activities general journal in Chapter 2 of this project.) City of Bingham Debt Service Fund Post-Closing Trial Balance As of December 31,2022 Additional information. On January 1,2023 , the City of Bingham sold a 20 -year issue of tax-supported serial bonds to finance the construction and equipping of an annex to City. Hall. As described in Chapter 5 of this cumulative problem, the construction and equipping of an annex to City of 2 percent, payable on January I and July I of each year, serial bonds in the amount of 5200,000 will mature on Jantary J, 2024, and January I of each following year until maturity. The premium on these bonds will be amortized on a straight-line basis every six months. (Note: You will nor use the effective interest method to calculafe interest expense. Interest expense will be the difference benween the cash payment for inferest and the amortization on the bond preminm.) Required: b. Prepare general journal entries, as necessary to record the following transactions in the debt service fund general joumal and, if applicable, in the governmental activities general joumal. Use aceount titles listed in the drop down [Account] menu for each of these accounting entities. Be sure to select year "2023" from the drop-down [Year] menu and the appropriate paragraph number shown in bold-face font below in the [Description] box. 1. |Para, 6-b-1| Record the adoption of the legal budget for the fiscal year ended December 31, 2023. 13 Estimated Other Financing Sourees: 40,000 Bond Premitm The appropriation for bond interest provides for the S6,000 interest payment related to the bonds matering on January 1,2023 and the $40,000 interest payment due on July 1,2023(,01$4,000,000) for the bonds issued on January 1,2023. 2. [Para. 6-b-2] Taxes were levied by the debt service fund in the amount of $1,938,000. Of this amount, \$38,000 was expected to be uncollectible. (NOTE: Total taxes billed was $1,938,000.) 3. [Para, 6-b-3] Cash in the amount of the S40,000 premium on the bonds sold on January 1,2023 was received and recorded in the debt senice fund. NOTE: The credits for this entry in the governmental activities general journal should have been made as part of the requirements for Chapter 5 . 4. [Para. 6-b-4] Temporary investments were purchased in the amount of $100,000. 5. |Para. 6-b-5| Checks were written and mailed to bondholders for bonds maturing on Jantary 1,2023. and to pay all bond interest due that day ( $300,000 current portion of long term debt, plas an interest payment of $6,000. In the govemmental activities general journal, debit Accrued lnterest Payable for the interest payment as this amount was expensed on December 31,2022 , the end of the preceding fiscal year. 6. [Para. 6-b-6] Current taxes receivable were collected in the amount of $1,841,100. Also, delinquent taxes receivable were collected in the amount of $5,600, along with Interest and Penalies Receivable on Taxes of 54,550 . 7. { Para, 6-b-7] Temporary investments were purchased in the amount of 5200,000 . 8. [Para, 6-b-8] Pay the $40,000 interest payment due on July 1,2023 . At the govemment-wide level, $1,000 was debited for amortization of the premum on bonds sold for the 2% serial bonds. 9. [ Para. 6-b-9] Current taxes receivable of $58,140 were collected. 10. { Para. 6-b-10| The uncollected balance of current taxes receivable and the related estimated uncollectible account were reclassified as delinquent. Interest and penalties of $3,000 were accrued, of which $150 was estimated to be uncollectible. 11. [Para. 6-b-11] Interest on temporary investments was received in cash in the amount of $9,500. 12. [Para.6b12] Cash to close the City Hall Annex Construction Fund was received in the amount of $242,000. (See Chapter 5, Para. 5-a-15). 13. [Para. 6-b-13] At December 31, 2023, accrued interest expense on the outstanding bond issue was recorded in the governmental activities general journal. Amortization of the premium on the 2% bonds sold was also recorded in the amount of $1,000. The total interest payable to be accrued is $40,000. Verify the accuracy of journal entries, including dates and paragraph numbers, and, if you have not already done so, post all entries to the general ledger of both the debt service fund and governmental activities by clicking on [Post Entries]. Make the entries needed to close the budgetary and operating statement accounts at the end of fiscal year 2023. Make this entry only in the journal for the debt service fund. Be sure for each account being closed that the check mark for [Closing Entry] is on and that "Closing Entry" appears in the [Description] box. [Note: Closing entries for governmental activities at the governmentwide level will be made in Chapter 9 of this cumulative problem.] c. Review your trial balance for reasonableness. You should have no tax receivables-current, and there should be no allowance that isn't linked to a receivable. You should also have no negative balances. There should be NO temporary accounts on the post-closing trial balance. For Submission: - 2023 Debt Service Fund general journal (journal entries) (pdf file) - 2023 Debt Service Fund Pre-closing trial balance (pdf file) - 2023 Debt Service Fund Post-closing trial balance (pdf file) - 2023 Debt Service Fund Balance Sheet (A=L+FB, which should be all the accounts on your postclosing TB). Financial statements should be formatted to print to one page. (Excel file) - 2023 Debt Service Fund Statement of Revenues, Expenditures and Changes in Fund Balance (should reconcile beginning fund balance to ending fund balance per the balance sheet). Financial statements should be formatted to print to one page. (Excel file) - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Budgetary Comparison Statement). There are NO budget revisions, so you need only show one budget (not origina and revised separately). Financial statements should be formatted to print to one page. (Excel file) The appropriation for bond interest prowides for the $6,000 interest payment related to the bonds: maturitg on January 1, 2023 and the $40,000 interest payment due on July 1, 2023 (01 454,000,000) for the bonds itrurd an Jamuary 1,2023. 2. [Para, 6-b-2] Taxes were levied by the debt service fund in the amount of $1,938,000. OF this amount, $38,000 was expected to be uncollectible. (NOTE: Total taxes billed was $1,938,000. 3. [Para. 6-b-3] Cash in the amount of the $40,000 premium on the bonds sold on 3 anuary 1,2023 was feceived and recorded in the debt service fund. NOTF: The credits for this entry in the governmental activities genenal journal should have been made as part of the requirements for chapter 5. 4. [Parz. 6-b-4] Temporary irvestments were purchased in the amount of 5100,000 . 5. [Para. 6-b-5] Checks were written and mailed to bondholders for bonds maturing on January 1, 2023, and to pay all bond interest due that diy ( $300,000 current portion of long term debt, plus an interest payment of $6,000. In the governmental activities genemal joumal, debit Accnued interest Payable for the interent payment as this amosint was expensed on December 31,2022 , the end of the preceding fiscal year. 6. [Part. 6-b-6] Current taves roccivable were collocted in the amount of $1,841,100. Also, delinquent tuxes receivable were collected in the amount of $5,600, along with Intercst and Penalties Receivable on Taxes of 54,550 7. [Para, 6-b-7] Temponary investments were purchased in the amonnt of 5200,000 . 8. [Para. 6-b-8] Pay the $40,000 interest payment due on July 1,2023 . At the govermment-wide level; 51,000 was debited for amortization of the premium on bonds sold for the 2% serial bonds. 9. [Para, 6-b-9] Current taxes receivable of $58,140 wore collected. 10. [Para. 6-b-10] The uncollected balance of current taxes receivable and the related catimated uncollectible account were reclassified as delinquent. Interest and penalties of $3,000 were acerued, of which $150 was estimated to be uncollectible. 14 Chapter 6 Transactions Affecting General I ong-Term Liabilities and Debt Service The City of Bingham utiluzes a single deht service fund to accotint for the service of all issucu of tax-supported and special assessment long-term debt. As of December 31,2022 , one issue of tax-stipported serial bonds was: outstanding See the beginning trial balance for governmental activities - the outatanding balance is classified as the current portion of long-1erm debt The post-clesing trial balance of the debt service fund as of December 31,2022 ; is shown below. A. Record the following aceounts and balances in the debt service fund gencral joumal, selecting 2022 from the [Year] menu and using 6-a for the [Description]. When completed sclect [Post Entries] to post the entries in the general ledgers. [Note: These opening balances were previously recorded in the governmental activities general journal in Chapter 2 of this project.) City of Bingham Debt Service Fund Post-Closing Trial Balance As of December 31,2022 Additional information. On January 1,2023 , the City of Bingham sold a 20 -year issue of tax-supported serial bonds to finance the construction and equipping of an annex to City. Hall. As described in Chapter 5 of this cumulative problem, the construction and equipping of an annex to City of 2 percent, payable on January I and July I of each year, serial bonds in the amount of 5200,000 will mature on Jantary J, 2024, and January I of each following year until maturity. The premium on these bonds will be amortized on a straight-line basis every six months. (Note: You will nor use the effective interest method to calculafe interest expense. Interest expense will be the difference benween the cash payment for inferest and the amortization on the bond preminm.) Required: b. Prepare general journal entries, as necessary to record the following transactions in the debt service fund general joumal and, if applicable, in the governmental activities general joumal. Use aceount titles listed in the drop down [Account] menu for each of these accounting entities. Be sure to select year "2023" from the drop-down [Year] menu and the appropriate paragraph number shown in bold-face font below in the [Description] box. 1. |Para, 6-b-1| Record the adoption of the legal budget for the fiscal year ended December 31, 2023. 13 Estimated Other Financing Sourees: 40,000 Bond Premitm The appropriation for bond interest provides for the S6,000 interest payment related to the bonds matering on January 1,2023 and the $40,000 interest payment due on July 1,2023(,01$4,000,000) for the bonds issued on January 1,2023. 2. [Para. 6-b-2] Taxes were levied by the debt service fund in the amount of $1,938,000. Of this amount, \$38,000 was expected to be uncollectible. (NOTE: Total taxes billed was $1,938,000.) 3. [Para, 6-b-3] Cash in the amount of the S40,000 premium on the bonds sold on January 1,2023 was received and recorded in the debt senice fund. NOTE: The credits for this entry in the governmental activities general journal should have been made as part of the requirements for Chapter 5 . 4. [Para. 6-b-4] Temporary investments were purchased in the amount of $100,000. 5. |Para. 6-b-5| Checks were written and mailed to bondholders for bonds maturing on Jantary 1,2023. and to pay all bond interest due that day ( $300,000 current portion of long term debt, plas an interest payment of $6,000. In the govemmental activities general journal, debit Accrued lnterest Payable for the interest payment as this amount was expensed on December 31,2022 , the end of the preceding fiscal year. 6. [Para. 6-b-6] Current taxes receivable were collected in the amount of $1,841,100. Also, delinquent taxes receivable were collected in the amount of $5,600, along with Interest and Penalies Receivable on Taxes of 54,550 . 7. { Para, 6-b-7] Temporary investments were purchased in the amount of 5200,000 . 8. [Para, 6-b-8] Pay the $40,000 interest payment due on July 1,2023 . At the govemment-wide level, $1,000 was debited for amortization of the premum on bonds sold for the 2% serial bonds. 9. [ Para. 6-b-9] Current taxes receivable of $58,140 were collected. 10. { Para. 6-b-10| The uncollected balance of current taxes receivable and the related estimated uncollectible account were reclassified as delinquent. Interest and penalties of $3,000 were accrued, of which $150 was estimated to be uncollectible. 11. [Para. 6-b-11] Interest on temporary investments was received in cash in the amount of $9,500. 12. [Para.6b12] Cash to close the City Hall Annex Construction Fund was received in the amount of $242,000. (See Chapter 5, Para. 5-a-15). 13. [Para. 6-b-13] At December 31, 2023, accrued interest expense on the outstanding bond issue was recorded in the governmental activities general journal. Amortization of the premium on the 2% bonds sold was also recorded in the amount of $1,000. The total interest payable to be accrued is $40,000. Verify the accuracy of journal entries, including dates and paragraph numbers, and, if you have not already done so, post all entries to the general ledger of both the debt service fund and governmental activities by clicking on [Post Entries]. Make the entries needed to close the budgetary and operating statement accounts at the end of fiscal year 2023. Make this entry only in the journal for the debt service fund. Be sure for each account being closed that the check mark for [Closing Entry] is on and that "Closing Entry" appears in the [Description] box. [Note: Closing entries for governmental activities at the governmentwide level will be made in Chapter 9 of this cumulative problem.] c. Review your trial balance for reasonableness. You should have no tax receivables-current, and there should be no allowance that isn't linked to a receivable. You should also have no negative balances. There should be NO temporary accounts on the post-closing trial balance. For Submission: - 2023 Debt Service Fund general journal (journal entries) (pdf file) - 2023 Debt Service Fund Pre-closing trial balance (pdf file) - 2023 Debt Service Fund Post-closing trial balance (pdf file) - 2023 Debt Service Fund Balance Sheet (A=L+FB, which should be all the accounts on your postclosing TB). Financial statements should be formatted to print to one page. (Excel file) - 2023 Debt Service Fund Statement of Revenues, Expenditures and Changes in Fund Balance (should reconcile beginning fund balance to ending fund balance per the balance sheet). Financial statements should be formatted to print to one page. (Excel file) - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual (Budgetary Comparison Statement). There are NO budget revisions, so you need only show one budget (not origina and revised separately). Financial statements should be formatted to print to one page. (Excel file) The appropriation for bond interest prowides for the $6,000 interest payment related to the bonds: maturitg on January 1, 2023 and the $40,000 interest payment due on July 1, 2023 (01 454,000,000) for the bonds itrurd an Jamuary 1,2023. 2. [Para, 6-b-2] Taxes were levied by the debt service fund in the amount of $1,938,000. OF this amount, $38,000 was expected to be uncollectible. (NOTE: Total taxes billed was $1,938,000. 3. [Para. 6-b-3] Cash in the amount of the $40,000 premium on the bonds sold on 3 anuary 1,2023 was feceived and recorded in the debt service fund. NOTF: The credits for this entry in the governmental activities genenal journal should have been made as part of the requirements for chapter 5. 4. [Parz. 6-b-4] Temporary irvestments were purchased in the amount of 5100,000 . 5. [Para. 6-b-5] Checks were written and mailed to bondholders for bonds maturing on January 1, 2023, and to pay all bond interest due that diy ( $300,000 current portion of long term debt, plus an interest payment of $6,000. In the governmental activities genemal joumal, debit Accnued interest Payable for the interent payment as this amosint was expensed on December 31,2022 , the end of the preceding fiscal year. 6. [Part. 6-b-6] Current taves roccivable were collocted in the amount of $1,841,100. Also, delinquent tuxes receivable were collected in the amount of $5,600, along with Intercst and Penalties Receivable on Taxes of 54,550 7. [Para, 6-b-7] Temponary investments were purchased in the amonnt of 5200,000 . 8. [Para. 6-b-8] Pay the $40,000 interest payment due on July 1,2023 . At the govermment-wide level; 51,000 was debited for amortization of the premium on bonds sold for the 2% serial bonds. 9. [Para, 6-b-9] Current taxes receivable of $58,140 wore collected. 10. [Para. 6-b-10] The uncollected balance of current taxes receivable and the related catimated uncollectible account were reclassified as delinquent. Interest and penalties of $3,000 were acerued, of which $150 was estimated to be uncollectible. 14