The following budgets in during both Capital Project and Debt Service Funds were approved for the year
Question:
The following budgets in during both Capital Project and Debt Service Funds were approved for the year 2019.
City of Jerusalem decides to build a bridge at a cost of $50,000,000 and includes the project in its 2019 capital budget. Financing for the project consists of a general obligation bond issue for $40,000,000, and $8,000,000 expenditure-driven grant from the state. The bond will be issued on January 2, 2019; it provides for annual interest payments of at rate 8%, the first interest payment will be in January, 2019. Also, they expect to pay $6,000 as broker fees. Debt Service Fund will finance all of its operations using a transfer from the general fund for $2,500,000.
Journalize the budget entries for Capital Project and Debt Service Funds.
Expert Answer:
Solving in two different ways for better understand i or ii Journal entries to record capital project Notes Debt Service Fund is a reserve maintained ... View the full answer
