As of December 31, 2022, Sandy Beach had $9,900,000 in 4.0 percent serial bonds outstanding. Cash of $535,000 is the debt service fund's only asset as of December 31, 2022, and there are no liabilities. The serial bonds pay interest semiannually on January 1 and July 1, with $500,000 in bonds being retired on each interest payment date. Resources for payment of interest are transferred from the General Fund, and the debt service fund levies property taxes in an amount sufficient to cover principal payments. Required a-1 Prepare debt service fund and government-wide entries in general journal form to reflect, as necessary, the following informatie and transactions for FY 2023. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) Transaction Fund/Governmental Activities General Journal Debit Credit 1. The operating budget for FY 2023 consists of estimated revenues of $1,030,000 and estimated other financing sources equal to the amount of interest to be paid in FY 2023. Appropriations must be provided for interest payments and bond redemptions on January 1 and July 1 Serial Bond Debt Service Fund

As of December 31, 2022, Sandy Beach had $9,900,000 in 4.0 percent serial bonds outstanding. Cash of $535,000 is the debt service fund's only asset as of December 31, 2022, and there are no liabilities. The serial bonds pay interest semiannually on January 1 and July 1, with $500,000 in bonds being retired on each interest payment date. Resources for payment of interest are transferred from the General Fund, and the debt service fund levies property taxes in an amount sufficient to cover principal payments. Required a-1 Prepare debt service fund and government-wide entries in general journal form to reflect, as necessary, the following informatie and transactions for FY 2023. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) Transaction Fund/Governmental Activities General Journal Debit Credit 1. The operating budget for FY 2023 consists of estimated revenues of $1,030,000 and estimated other financing sources equal to the amount of interest to be paid in FY 2023. Appropriations must be provided for interest payments and bond redemptions on January 1 and July 1 Serial Bond Debt Service Fund

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 11E

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Bats Corporation issued 800,000 of 12% face value bonds for 851,705.70. The bonds were dated and issued on April 1, 2019, are due March 31, 2023, and pay interest semiannually on September 30 and March 31. Bats sold the bonds to yield 10%. Required: 1. Prepare a bond interest expense and premium amortization schedule using the straight-line method. 2. Prepare a bond interest expense and premium amortization schedule using the effective interest method. 3. Prepare any adjusting entries for the end of the fiscal year, December 31, 2019, using the: a. straight-line method of amortization b. effective interest method of amortization 4. Assume the company retires the bonds on June 30, 2020, at 103 plus accrued interest. Prepare the journal entries to record the bond retirement using the: a. straight-line method of amortization b. effective interest method of amortization
D4. As of december 31, 2019, Sandy Beach had $9,500,000 in 4.5 percent serial bonds outstanding. Cash of $509,000 is the debt service fund’s only asset as of December 31, 2019, and there are no liabilities. The serial bonds pay interest semiannually on January 1 and July 1, with $500,000 in bonds being retired on each interest payment date. Resources for payment of interest are transferred from the General Fund, and the debt service fund levies property taxes in an amount sufficient to cover principal payments.
11. As of December 31, 2010, ‘N’ Town had OMR 5,750,000 in 3 percent serial bonds outstanding. Cash of OMR 524,500 is the debt service fund’s only asset as of December 31, 2010, and there are no liabilities. The serial bonds pay interest semi-annually on January 1 and July 1, with OMR 350,000 in bonds being retired on each interest payment date. Resources for payment of interest are transferred from the General Fund and the debt service fund levies property taxes in an amount sufficient to cover principal payment. Required: Prepare debt service fund and government-wide entries in general journal form to reflect, as necessary, the following information and transaction for FY 2011. (1) The operating budget for FY 2011 consists of estimated revenues of OMR 610,000 and estimated other financing sources equal to the amount of interest to be paid in FY 2011. Appropriations must be provided for interest payments and bond redemptions on January 1 and July 1. (2) Cash was received from the…
6. As of December 31, 2016, Rustaq New Town had OMR 9,500,000 in 4.5 percent serial bonds outstanding. Cash of OMR 509,000 is the debt service fund’s only asset as of December 31, 2016, and there are no liabilities. The serial bonds pay interest semiannually on January 1 and July 1, with OMR 500,000 in bonds being retired on each interest payment date. Resources for payment of interest are transferred from the General Fund and the debt service fund levies property taxes in an amount sufficient to cover principal payments. Required Prepare debt service fund and government-wide entries in general journal form to reflect, as necessary, the following information and transactions for FY 2017. The operating budget for FY 2016 consists of estimated revenues of OMR 1,020,000 and estimated other financing sources equal to the amount of interest to be paid in FY 2017. Appropriations must be provided for interest payments and bond redemptions on January 1 and July 1.
On 1/1/2019, the city of San Francisco issued at par $2,000,000 of 5% term bonds to renovate the Golden Gate Bridge. The bonds mature in five years on 1/1/2024 with semiannual interest payments on 6/30 and 12/31. A debt service fund is created to manage the payment of principals and interests of this bond. As illustrated below, a sinking fund is to be established with equal semiannual additions made on 6/30 and 12/31. General fund transfers to the debt service fund the cash for sinking fund additions and semiannual interest payments a few days before the due dates. Year Period Required additions 2019 1 $174,461 2 174,461 2020 3 174,461 4 174,461 2021 5 174,461 6 174,461 2022 7 174,461 8 174,461 2023 9 174,461 10 174,461 Prepare journal entries for the following transactions for the debt service fund. Show your calculations. 1. Record the budget for the year 2019. 2. Record the transfer of cash from the general fund to the debt…
On October 31, 2020, the Village of Lexington issued $1,000,000 of 3% general obligation serial bonds. The bonds pay interest on April 30 and October 31. Starting on October 31, 2021, the first of 20 equal annual serial payments of $50,000 was made. At December 31, 2022, what is the amount of accrued but unmatured interest that is not reported by the debt service fund? A. $4,875. B. $5,000. C. $4,500. D. $4,750.
The following information relates to non-current investments that Dragon Company placed in trust as required by underwriter of its bonds: Bond sinking fund balance, January 1, 2018, P2,000,000; Additional investment during 2018, P500,000; Interest revenue, P20,000; Administrative costs, P15,000,Carrying value of bonds payable, P3,000,000. What amount should Dragon Company report in its December 31, 2018 balance sheet related to its non-current investment for bond sinking fund requirements?
Raygun County had outstanding $35 million in Series 1998 general obligation bonds on June 30, 2018. The bonds were issued at an interest rate of 10 percent with interest payable on June 30 and December 31. In July 2018, interest rates declined substantially, and the county issued refunding bonds in the amount of $35 million at 5 percent. The proceeds of the refunding bonds were placed in escrow along with $2,800,000 held in the county’s debt service fund as a sinking fund for the 1998 debt. The proceeds of the refunding bonds and the sinking fund amount would be used in December 2018 (the call date) to purchase the 1998 debt at a 3 percent call premium, totaling $1,050,000, plus accrued interest of $1,750,000. The County had $250,000 of unamortized debt issue costs on the 1998 bonds, which it reported in its government-wide financial statements. This amount combined with the call premium resulted in a $3,050,000 “loss” on the refunding. (a) What journal entries should the county make…
On October 31, 2020, the Village of Lexington issued $1,000,000 of 3% general obligation serial bonds. The bonds pay interest on April 30 and October 31. Starting on October 31, 2021, the first of 20 equal annual serial payments of $50,000 was made. For the year ended December 31, 2022, what is the amount that should be reported for “expenditures—matured interest” on the debt service fund’s statement of revenues, expenditures, and changes in fund balance? A. $27,750. B. $30,000. C. $27,000. D. $28,500.
Presented below are three independent situations. Instructions a. On January 1, 2019, Langley Co. issued 9% bonds with a face value of $700,000 for $656,992 to yield 10%. The bonds are dated January 1, 2019, and pay interest annually. What amount is reported for interest expense in 2019 related to these bonds? b. Tweedie Building Co. has a number of long-term bonds outstanding at December 31, 2019. These long-term bonds have the following sinking fund requirements and maturities for the next 6 years. Sinking Fund Maturities 2020 $300,000 $100,000 2021 100,000 250,000 2022 100,000 100,000 2023 200,000 — 2024 200,000 150,000 2025 200,000 100,000 Indicate how this information should be reported in the financial statements at December 31, 2019. c. In the long-term debt structure of Beckford Inc., the following three bonds were reported:…
Show your solution. Thank you On March 1, 2021, RED Corporation issued at 103 plus accrued interest, 1,000 of its 9%,₱1,000 bonds. The bonds are dated January 1, 2021, and mature on January 1, 2026. Interest is payable semi-annually on January 1 and July 1. RED paid transaction costs of ₱5,000. How much would RED realize as net cash receipts from the bond issuance? a. ₱ 1,030,000 b. ₱ 1,045,000 c. ₱ 1,025,000 d. ₱ 1,040,000
3.) The Village of Hawksbill issued $4,000,000 in 5 percent general obligation, tax-supported bonds on July 1, 2023, at a premium of 1.5 percent. A fiscal agent is not used. Resources for principal and interest payments are to come from the General Fund. Interest payment dates are December 31 and June 30. The first of 20 annual principal payments will be made on June 30, 2024. Hawksbill has a calendar fiscal year. A capital projects fund transferred the premium to the debt service fund. On December 31, 2023, funds in the amount of $100,000 were received from the General Fund, and the first interest payment was made. The books were closed for 2023. On June 30, 2024, funds in the amount of $240,000 were received from the General Fund, and the second interest payment ($100,000) was made along with the first principal payment ($200,000). On December 31, 2024, funds in the amount of $95,000 were received from the General Fund, and the third interest payment was made (also in the amount of…