Week 3: Quiz i Saved Help Save & Exit Submit Transaction Fund / Governmental Activties General Journal Debit Credit 3 1. A town secures a note payable in the amount of $200,000 to pay initial expenses for construction of a new police station. Town administrators plan to repay this note within three months with tax revenues and issue a construction bond shortly thereafter. 1 Capital Projects Fund Governmental Activities 2. A county secures a bond anticipation note in the amount of $500,000 to pay initial expenses for construction of a convention center. The board of county commissioners recommended that the finance department refinance the bond anticipation note by issuing a construction bond when construction activity begins. 2 Capital Projects Fund Governmental Activities 3. Due to an unexpected change in interest rates, a village issued a $3,000,000 bond at 98 percent of par value. The bond was issued to fund construction of a bike path, including restrooms and picnic shelters. It is expected that the shortage will be covered by a future transfer from another fund Mc Graw Hill