Problem

(Interfund-GCA-GLTL Entries) Prepare all journal entries (budgetary and actual) required in all funds and the GCA and GLTL accounts to record the following transactions and events:

1. A state issued $50,000,000 of 4%, 20-year term bonds at 105 to provide financing for construction of a new state legislative office building. The premium, which is to be used for debt service, was transferred to the appropriate fund. Bond issue costs of $75,000 were paid directly from the General Fund. The bonds were issued on April 1, 20X1, and annual interest is due each March 31.

2. The state signed contracts for $55,000,000 for construction of the building. Costs incurred for construction of the office building during 20X1 amounted to $18,000,000 and all but 10% was paid.

3. Annual interest of $2,000,000 was paid on the bonds on March 31, 20X2.

4. General Fund resources, $5,000,000, were transferred to the Legislative Office Building Capital Projects Fund during 20X2 for use on the project.

5. The project was completed. Expenditures in 20X2 totaled $36,500,000, and all fund liabilities were paid. The remaining resources, to be used for debt service, were paid to the appropriate fund.

6. $3,300,000 was transferred from the General Fund to service the bonds in 20X3.

7. Interest of $2,000,000 was paid on March 31, 20X3.

8. The bonds were retired on March 31 of 20Z1. Funds totaling $46,000,000 had been accumulated previously in the Debt Service Fund to retire the bonds; the remainder needed to retire the bonds and make the last $2,000,000 interest payment was transferred from the General Fund in 20Z1.