Al Shahri community, located in the City of Duqm, voted to form a local improvement district to fund the construction of a new community center. The city agreed to construct the community center and administer the bond debt; however, the community was solely responsible for repaying the bond issue. To administer the bond debt, the city established the Local Improvement District Fund. Following are several events connected with the Local Improvement District Fund. 1. On June 30, 2019, the city assessed levies totaling OMR3,000,000. The levies are payable in 10 equal annual installments with 4.5 percent interest on unpaid installments. 2. All assessments for the current period were collected by June 30, 2020, as was the interest due on the unpaid installments. 3. On July 1, 2020, the first principal payment of OMR 300,000 was made to bond holders as was interest on the debt. Required Make journal entries for each of the foregoing events that affected the Local Improvement District Fund.

Al Shahri community, located in the City of Duqm, voted to form a local improvement district to fund the construction of a new community center. The city agreed to construct the community center and administer the bond debt; however, the community was solely responsible for repaying the bond issue. To administer the bond debt, the city established the Local Improvement District Fund. Following are several events connected with the Local Improvement District Fund. 1. On June 30, 2019, the city assessed levies totaling OMR3,000,000. The levies are payable in 10 equal annual installments with 4.5 percent interest on unpaid installments. 2. All assessments for the current period were collected by June 30, 2020, as was the interest due on the unpaid installments. 3. On July 1, 2020, the first principal payment of OMR 300,000 was made to bond holders as was interest on the debt. Required Make journal entries for each of the foregoing events that affected the Local Improvement District Fund.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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