1. During the year, Raindrop City engaged in the following transactions. The city has a 12/31...

  

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1. During the year, Raindrop City engaged in the following transactions. The city has a 12/31 fiscal year end. Record the transactions listed below and indicate in which fund the entry is made [7 points] a. On February 1, 2017, the city issued bonds in the amount of $700,000. The bonds sold for 102, and the city incurred $12,000 bonds issuance costs. The proceeds will be used to purchase a warehouse, to store old paperwork and other important city documents. b. On February 17, 2017, the city purchased the warehouse mentioned above for $726,000. C. On March 29, 2017, the city transferred $121,000 to its debt service fund, for the upcoming payment of outstanding bonds principal and interest. e. d. On April 1, 2017, the city made payments of $100,000 principal and $21,000 interest on outstanding bonds. On September 5, 2017, the city leased a paper-shredding machine. The lease qualified as a capital lease. The terms of the lease required yearly payments, starting next year. The present value of the minimum lease payments is $11,000. 1. During the year, Raindrop City engaged in the following transactions. The city has a 12/31 fiscal year end. Record the transactions listed below and indicate in which fund the entry is made [7 points] a. On February 1, 2017, the city issued bonds in the amount of $700,000. The bonds sold for 102, and the city incurred $12,000 bonds issuance costs. The proceeds will be used to purchase a warehouse, to store old paperwork and other important city documents. b. On February 17, 2017, the city purchased the warehouse mentioned above for $726,000. C. On March 29, 2017, the city transferred $121,000 to its debt service fund, for the upcoming payment of outstanding bonds principal and interest. e. d. On April 1, 2017, the city made payments of $100,000 principal and $21,000 interest on outstanding bonds. On September 5, 2017, the city leased a paper-shredding machine. The lease qualified as a capital lease. The terms of the lease required yearly payments, starting next year. The present value of the minimum lease payments is $11,000.

Answer rating: 100% (QA)

a Account Cash Bond Issue Cost Date 20170201 Here the entry is mad... View the full answer