Required information [The following information applies to the questions displayed below.] As of december 31, 2019. Sandy Beach had $9,500,000 in 4.5 percent serial bonds outstanding. Cash of $509,000 is the debt service fund's only asset as of December 31, 2019, and there are no liabilities. The serial bonds pay interest semiannually on January 1 and July 1, with $500,000 in bonds being retired on each interest payment date. Resources for payment of interest are transferred from the General Fund, and the debt service fund levies property taxes in an amount sufficient to cover principal payments. Required a-1. Prepare debt service fund and government wide entries in general Journal form to reflect, as necessary, the following information and transactions for FY 2020. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) Answer is not complete. Fund Governmental Transaction Activies General Journal Dobit Credit 1. The operating budget for FY 2020 consists of estimated revenues of $1,020,000 and estimated other financing sources equal to the amount of interest to be paid in FY 2020. Appropriations must be provided for interest payments and bond redemptions on January 1 and July 1 1 Serial Bond Debt Service Estimated Other Financing Sources Fund 416 250 Estimated Revenues 1,020,000 Appropilations 1.416,250 Budgetary Fund Balance 20.000 Governmental Activities No Journal Entry Required 2 Cash was received from the General Fund and checks were written and mailed for the January 1 principal and interest payments 2a Serial Bond Debt Service Fund Record cash received from the general fund Cash Dunus Pay Cash OVU VUU OS 713,750 3. Property taxes in the amount of 51.020,000 were levied (no estimate for uncollectible accounts has been made) Serial Bond Debt Service 3 Fund Taxes Receivable Current Revenues 1.020,000 1,020,000 Governmental Activities Taxes Receivable Current General Revenues Property Taxes 1.020,000 1.020,000 4 Property taxes in the amount of $1,019,000 were collected 4 Serial Bond Debt Service Cash Fund Taxes Receivable Current 1.019,000 1.019,000 Governmental Activities No Journal Entry Required 5. Cash was received from the General Fund and checks were written and maled for the July 1 principal and interest payments. 5a Serial Bond Debt Service Fund Record cash received from the general fund Cash 202,500 Other Financing Sources-Interfund Transfers in S 5b 202,500 Record principal and interest paid Expenditures Interest Expenditures Principal Cash 202,500 500,000 5c Governmental Activities 702 500 Expenses Interest on Long-term debt Bonds Payable Cash 202,500 500,000 702 500 Required information Fund Governmental Transaction Activies General Journal Debit Credit 6. Adjusting entries were made and uncollected taxes receivable were reclassified as delinquent. At the fund level entries were also made to close budgetary and operating statement accounts (Ignore closing entries in the government activities journal) 6a Serial Bond Debt Service Fund Record the entry to close the budgetary statement account Budgetary Fund Balance 20,000 Appropriations 1,416,250 Estimated Other Financing Sources 416,250 Estimated Revenues 1.020,000 6b Record the entry for classifying uncollectible accounts Taxes Receivable --Delinquent Taxes Receivable-Current S 1.000 1,000 6c Record the deferred inflows of resources Taxes Receivable Delinquent Taxes Receivable Current 1,000 1,000 6d Record the entry to close the operating statement account Other Financing Source-Interlund Transfers in Revenues Expenditures - Inforest Expenditures-- Principal Fund Balance - Assigned OOOO 416.250 1,020,000 416.250 1,000,000 20,000 60 Governmental Activities Expenses Interest on Long term debt Interest Payable 191 250 30 191.250 GF Record the entry for classifying uncollectible accounts Taxes Receivable-Delinquent Taxes Receivable Current 1.000 1,000
