Question
Prepare general journal entries, as necessary to record the following transactions in the debt service fund general journal and, if applicable, in the governmental activities
Prepare general journal entries, as necessary to record the following transactions in the debt service fund general journal and, if applicable, in the governmental activities general journal.
9) On July 1, the debt service fund received $50,000 from the General Fund for interest payment on the 3% serial bonds. Checks were written and mailed to bondholders for the interest payment due July 1, 2020.
Required: Record the transfer in the debt service fund and the interest payment in both the debt service fund and governmental activities journals. At the government-wide level, $3,125 was debited for amortization of the premium on the 3% serial bonds.
10) Cash to close the City Hall Annex Construction Fund was received in the amount of $4,000. (See Chapter 5, para. 5a-18). The city council authorized a budget amendment for this unexpected transfer.
Required: Record the budget amendment and transfer in the debt service fund. This transaction involves two governmental funds, thus it has no effect on the governmental activities general journal.
11) On September 30, the debt service fund made the principal and interest payments associated with the 2% serial bond.
Required: Record this transaction in both the debt service fund and governmental activities journals.
12) The uncollected balance of current taxes receivable and the related estimated uncollectible account were reclassified as delinquent. Property tax revenues and deferred inflows of resources were adjusted for unavailable revenues. Interest and penalties of $1,200 were accrued, of which $120 was estimated to be uncollectible.
Required: Record this transaction in both the debt service fund and governmental activities journals. In the debt service fund net receivables and interest and penalties should be also be recorded as deferred inflows of resources, rather than revenues.
Information from before:
CITY OF BINGHAM Debt Service Fund Trial Balance As of December 31, 2019 Debits $950,000 85,000 Credits Cash Taxes Receivable-Delinquent Allowance for Uncollectible Delinquent Taxes nterest and Penalties Receivable on Taxes Allowance for Uncollectible Interest and Penalties Deferred Inflows of Resources Fund Balance-Restricted Totals $54,000 9,600 960 39,640 950,000 $1,044,600 $1,044,600
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