Residents of Green Acres, a gated community located in the City of Foothills, voted to form a local improvement district to fund the construction of a neighborhood park The city agreed to administer the bonded debt however, residents of Green Acres are solely responsible for repaying the bond issue The following events are related to the special assessment park debt for the current fiscal year On January 1, the city assessed levies totaling $5,200,000 on properties within Green Acres The levies are payable in 10 equal annual installments due at the end of the fiscal year, beginning in the current year, with 3 percent interest due on unpaid installments All assessments associated with the current years installment were collected by December 31, as was the interest due on the unpaid installments A portion of assessments receivable equal to next years installment of $520,000 was reclassified as current On December 31, the first principal payment of $520,000 was made to bondholders, as was interest on the debt All additions and deductions were recorded by the custodial fund Assume that all additions and deductions can be aggregated because resources are held less than three months X Answer is not complete No Transaction General Journal Debit Credit 01 Assessments ReceivableCurrent 520,000 468,000 X Assessments Receivable Noncurrent Due to Special Assessment Bondholders Principal 5,200,000 B 2(a) Cash 6,604,000 X Assessments Receivable Current Due to Special Assessment BondholdersInterest 520,000 520,000 X C 2(b) 520,000 Assessments Receivable Current Assessments Receivable Noncurrent 520,000 D 03 Due to Special Assessment BondholdersPrincipal 520,000 X Due to Special Assessment Bondholders Interest 1 404 000 x Required information Assessments Receivable Noncurrent OZU, UUU D 03 Due to Special Assessment BondholdersPrincipal 520,000 X Due to Special Assessment BondholdersInterest 1,404 000 x E 04 DeductionsPayment of Principal to Bondholders 520,000 Cash 604,000 X DeductionsPayment of Interest to Bondholders DeductionsPayment of Principal to Bondholders AdditionsPrincipal and Interest Collections 6,640,000 X

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 18, 2024

Residents of Green Acres, a gated community located in the City of Foothills, voted to form a local improvement district to fund the construction of

Residents of Green Acres, a gated community located in the City of Foothills, voted to form a local improvement district to fund the construction of a neighborhood park. The city agreed to administer the bonded debt; however, residents of Green Acres are solely responsible for repaying the bond issue. The following events are related to the special assessment park debt for the current fiscal year:

On January 1, the city assessed levies totaling $5,200,000 on properties within Green Acres. The levies are payable in 10 equal annual installments due at the end of the fiscal year, beginning in the current year, with 3 percent interest due on unpaid installments.
All assessments associated with the current years installment were collected by December 31, as was the interest due on the unpaid installments. A portion of assessments receivable equal to next years installment of $520,000 was reclassified as current.
On December 31, the first principal payment of $520,000 was made to bondholders, as was interest on the debt.
All additions and deductions were recorded by the custodial fund. Assume that all additions and deductions can be aggregated because resources are held less than three months.

X Answer is not complete. No Transaction General Journal Debit Credit 01 Assessments ReceivableCurrent 520,000 468,000 X Assessments Receivable-Noncurrent Due to Special Assessment Bondholders-Principal 5,200,000 B 2(a) Cash 6,604,000 X Assessments Receivable-Current Due to Special Assessment BondholdersInterest 520,000 520,000 X C 2(b) 520,000 Assessments Receivable-Current Assessments Receivable-Noncurrent 520,000 D 03 Due to Special Assessment BondholdersPrincipal 520,000 X Due to Special Assessment Bondholders-Interest 1.404.000 x ! Required information Assessments Receivable-Noncurrent OZU, UUU D 03 Due to Special Assessment BondholdersPrincipal 520,000 X Due to Special Assessment BondholdersInterest 1,404.000 x E 04 DeductionsPayment of Principal to Bondholders 520,000 Cash 604,000 X DeductionsPayment of Interest to Bondholders DeductionsPayment of Principal to Bondholders AdditionsPrincipal and Interest Collections 6,640,000 X