X Answer is complete but not entirely correct. Fund / Transaction Governmental General Journal Debit Credit Activties 1. The General Fund collected and transferred $620,000 in tax collections to the debt service fund; $530,000 of this amount was used to retire outstanding serial bonds and the remainder was used to make the interest payment on the outstanding serial bonds. 1a General Fund Record the receipt of cash from tax collections. Cash 620,000 Revenues 620,000 1b Record the transfer of cash collected from taxes to the debt service fund. Other Financing UsesInterfund Transfers Out 620,000 Cash 620,000 1c Debt Service Fund Record the transfer of cash collected from taxes to the debt service fund. 620,000 Cash Other Financing SourcesInterfund Transfers In 620,000 1d Record the payment of principal and interest to retire the bonds. ExpendituresInterest 90,000 ExpendituresPrincipal 530,000 Cash 620,000 1e Governmental Activities Record the receipt of cash from tax collections. 620,000 Cash General RevenuesTaxes 620,000 1f Record the payment of principal and interest to retire the bonds. Expenses-Interest on Long-term debt 90,000 Serial Bonds Payable 530,000 Cash 620,000 2. A $6,200,000 issue of serial bonds to finance a capital project was sold at 106 plus accrued interest in the amount of $62,000. The accrued interest and the premium were recorded in the debt service fund. Accrued interest on bonds sold must be used for interest payments; the premium is designated by state law for eventual payment of bond principal. Capital 2 Cash Projects Fund 6,200,000 Other Financing SourcesProceeds of Bonds 6,200,000 Debt Service Fund Cash 434,000 372,000 Other Financing SourcesPremium on Bonds Payable Revenues 62,000 Governmental Activities Cash so Serial Bonds Payable Interest Payable Premium on Bonds Payable 6,290,000 6,200,000 62,000 90,000x 3. The debt service fund made a $130,000 lease payment, of which $18,682 was interest. Funds used to make the lease payment came from a capital grant received by the special revenue fund. Special Revenue Fund Record cash received as capital grant. Cash 130,000 Revenues 130,000 3. The debt service fund made a $130,000 lease payment, of which $18,682 was interest. Funds used to make the lease payment came from a capital grant received by the special revenue fund. Special 3a Revenue Fund Record cash received as capital grant. Cash 130,000 Revenues 130,000 8 } 3b Record the transfer of fund for lease payment to the debt service fund. Other Financing UsesInterfund Transfers Out 130,000 Cash 130,000 3c Debt Service Fund Record the transfer of fund for lease payment from the special revenue fund. Cash 130,000 Other Financing SourcesInterfund Transfers 130,000 In 3d Record the principal and interest on lease paid. ExpendituresInterest ExpendituresPrincipal Cash 18,682 111,318V 130,000 3e Governmental Activities Record cash received as capital grant. 130,000 Cash Premium on Bonds Payable X 130,000 3f Record the principal and interest on lease paid. Expenses Interest on Lease Lease Obligations Payable Cash 18,682 111,318 130,000 4. Tax-supported serial bonds with a $7,400,000 par value were issued in cash to permit refunding of a $7,400,000 par value issue of term bonds. Assume that the term bonds had been issued several years earlier at par. Debt Service 4a Record the issue of tax-supported serial bonds for partial refund of term Fund bonds. Cash 7,400,000 Other Financing SourcesProceeds of Refunding Bonds 7,400,000 4b Record the refund of the par value bonds. Other Financing Uses-Refunded Bonds Cash 7,400,000 7,400,000 4C Governmental Activities Record the issue of tax-supported serial bonds for partial refund of term bonds. Cash 7,400,000 Serial Bonds Payable 7,400,000 4d Record the refund of the par value bonds. Term Bonds Payable Cash 7,400,000 7,400,000 5. Four months prior to year-end, 4 percent special assessment bonds totaling $420,000 were issued to fund a streetlight improvement project in a local subdivision. The bonds are secondarily backed by the village. The first $24,000 installment will be due from property owners six months after the initial bond issuance, but no debt payments are due in the first year. Debt Service 5 Fund Record the issue of special assessment bonds. Cash 420,000 Other Financing SourcesProceeds of Special 420,000 Assessment Bonds 5b Record the current and deferred installment receivable from the local subdivision. Assessments ReceivableCurrent 24,000, Assessments Receivable-Unavailable 396,000 Revenues 24,000 Deferred Inflow of ResourcesUnavailable 396,000 Revenues 5c Governmental Activities Record the issue of special assessment bonds. Cash Special Assessment Debt with Governmental Commitment 420,000 420,000 5d Record the current and deferred installment receivable from the local subdivision. Assessments ReceivableCurrent 24,000 Assessments Receivable-Unavailable 396,000 Program RevenuesGeneral Government 24,000 Deferred Inflow of ResourcesUnavailable 396,000 Revenues 5e Record the interest payable on the special assessment debt. Expenses Interest on Special Assessment 5,600 debt Interest Payable 5,600 6. A $6,200,000 issue of construction bonds were sold at par by the capital projects fund. Debt issuance costs included administrative fees of $55,800 and prepaid insurance costs of $6,200. Capital Record the issue of construction bonds. Projects Fund Cash 6,200,000 Other Financing SourcesProceeds of Bonds 6,200,000 6b Record the debt issuance costs. ExpendituresDebt Issuance Cost Cash 3 62,000 62,000 6C Governmental Activities Record the issue of construction bonds. Cash Bonds Payable 16,200,000 6,200,000 6d Record the debt issuance costs. Bond Issuance Expenses Prepaid Insurance Costs Cash 3 55,800 6,200 62,000