Question

Prepare general journal entries to record the effects on the General Long-Term Liabilities accounts of the following transactions. The transactions are independent of one another unless otherwise noted.
1. Bond anticipation notes that meet the criteria for noncurrent treatment were issued to provide financing for a general government capital project. The notes were issued at their face (par) value of $5,000,000.
2. Special assessment bonds guaranteed by the government matured and were paid during the year: $50,000 principal and $30,000 interest were paid.
3. Principal and interest on the County Courthouse Serial Bonds matured during the year. The maturing interest ($200,000) was paid from the related Debt Service Fund, but the maturing principal ($75,000) had not been paid by year end. General Fund revenues were transferred to cover the interest payments.
4. General Fund expenditures accounts included a Rent Expenditures account with a balance of $200,000. Further investigation of the account indicated that the balance resulted from the payment of $40,000 on operating leases and $160,000 of lease payments on a capital lease (of which $90,000 was for imputed interest).
5. The total general government underfunded pension liability at the beginning of the fiscal year was $14,000,000. Of this amount, $1,500,000 was considered a fund liability. The total general government underfunded pension liability at the end of the fiscal year was $14,500,000. Of this amount, $2,500,000 was considered due and payable at year end.
6. Advance refunding bonds ($10,000,000 par) were issued at 100. The proceeds of the refunding and $2,000,000 of previously accumulated Debt Service Fund resources were set aside in an irrevocable trust to defease in substance $11,500,000 of School Bonds.
7. Assume the same information as in item 6, except that the School Bonds are not defeased in substance as a result of the transaction described.



$1.99
Sales1
Views113
Comments0
  • CreatedOctober 25, 2014
  • Files Included
Post your question
5000