The City of Amarillo is authorized to issue $8,000,000, 3 percent regular serial bonds in 2017 for
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a. Prepare the budgetary entries for 2017 assuming that the bonds were scheduled to be issued on January 2. Assume that the January 1, 2018, principal and interest payments will be included in the 2018 budget.
b. The bonds were sold on February 1, 2017, at 101. Prepare the journal entries needed to record the issuance of the bonds, including the entries required in the debt service fund and any entries required in the governmental activities general ledger at the government-wide level.
c. Prepare the entry required to reflect the transfer of funds from the General Fund in the debt service fund. (You may ignore the entry in the General Fund.)
d. Prepare the journal entries needed to record first interest payment made on July 1, including the entries required in the debt service fund and any entries required in the governmental activities general ledger at the government-wide level. Assume that the straight-line method is used for premium amortization.
e. What, if any, adjustments would need to be made to the debt service fund or the governmental activities general ledger at the government-wide level during the fiscal year?
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Related Book For
Accounting for Governmental and Nonprofit Entities
ISBN: 978-0078025822
17th edition
Authors: Jacqueline Reck, Suzanne Lowensohn, Earl Wilson
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