The City of Waterman established a capital projects fund for the construction of an access ramp from the parking garage to the city s office building to be used by individuals with disabilities The estimated cost of the ramp is $ 2 2 0 , 0 0 0 On January 1 , 2 0 X 2 , a 1 0 percent, $ 1 5 4 , 0 0 0 bond issue was sold at 1 0 4 with the premium transferred to the debt service fund At that date, the county board provided a $ 6 6 , 0 0 0 grant After a period of negotiation, the city council awarded a construction contract for $ 1 8 5 , 0 0 0 on April 5 , 2 0 X 2 The ramp was completed on August 8 , 2 0 X 2 its actual cost was $ 1 9 5 , 0 0 0 The city council approved payment of the total actual cost of $ 1 9 5 , 0 0 0 In addition to the $ 1 9 5 , 0 0 0 , the ramp was carpeted with all weather material at a cost of $ 7 , 3 9 0 On November 3 , 2 0 X 2 , the city council gave the final approval to pay for the ramp and the carpeting After all bills were paid, the remaining fund balance was transferred to the debt service fund The City of Waterman established a debt service fund to account for the financial resources used to service the bonds issued to finance the ramp is $ 2 2 0 , 0 0 0 The 1 0 percent, $ 1 5 4 , 0 0 0 bond issue was sold at 1 0 4 on January 1 , 2 0 X 2 It is a 1 0 year serial bond issue The resources to pay the interest and annual principal will be from a property tax levy Additional Information The operating budget for 2 0 X 2 included estimated revenue of $ 3 7 , 7 0 0 Budgeted appropriations included $ 1 5 , 4 0 0 for principal, $ 1 5 , 4 0 0 for interest, and $ 5 , 7 0 0 for other items The budget also included an estimated transfer in of $ 6 , 9 0 0 from the capital projects fund The property tax levy was for $ 4 4 , 0 0 0 and an allowance for uncollectibles of $ 5 , 5 0 0 was established Collections totaled $ 3 6 , 9 0 0 The remaining taxes were reclassified as delinquent and the allowance was reduced to $ 1 , 6 0 0 The bond premium was received from the capital projects fund The current portion of the serial bonds and the interest due this year were recorded and paid Other expenses charged to the debt service fund totaled $ 1 , 7 2 0 , of which $ 1 , 2 3 0 was paid The nominal accounts were closed Required Prepare entries for the debt service fund for 2 0 X 2 Prepare a balance sheet for the debt service fund as of December 3 1 , 2 0 X 2 Prepare a statement of revenues, expenditures, and changes in fund balance for the debt service fund for 2 0 X 2

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on May 08, 2024

The City of Waterman established a capital projects fund for the construction of an access ramp from the parking garage to the city s office

The City of Waterman established a capital projects fund for the construction of an access ramp from the parking garage to the city

s office building to be used by individuals with disabilities. The estimated cost of the ramp is $

220, 000 .

On January

1, 20

2,

10

percent, $

154, 000

bond issue was sold at

104

with the premium transferred to the debt service fund. At that date, the county board provided a $

66, 000

grant. After a period of negotiation, the city council awarded a construction contract for $

185, 000

on April

5, 20

2 .

The ramp was completed on August

8, 20

2

; its actual cost was $

195, 000 .

The city council approved payment of the total actual cost of $

195, 000 .

In addition to the $

195, 000,

the ramp was carpeted with all

-

weather material at a cost of $

7, 390 .

On November

3, 20

2,

the city council gave the final approval to pay for the ramp and the carpeting. After all bills were paid, the remaining fund balance was transferred to the debt service fund.

The City of Waterman established a debt service fund to account for the financial resources used to service the bonds issued to finance the ramp is $

220, 000 .

The

10

percent, $

154, 000

bond issue was sold at

104

on January

1, 20

2 .

It is a

10 -

year serial bond issue. The resources to pay the interest and annual principal will be from a property tax levy.

Additional Information:

The operating budget for

20

2

included estimated revenue of $

37, 700 .

Budgeted appropriations included $

15, 400

for principal, $

15, 400

for interest, and $

5, 700

for other items. The budget also included an estimated transfer in of $

6, 900

from the capital projects fund.

The property tax levy was for $

44, 000

and an allowance for uncollectibles of $

5, 500

was established. Collections totaled $

36, 900 .

The remaining taxes were reclassified as delinquent and the allowance was reduced to $

1, 600 .

The bond premium was received from the capital projects fund.

The current portion of the serial bonds and the interest due this year were recorded and paid. Other expenses charged to the debt service fund totaled $