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. a-2. Prepare the closing entries. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the firstaccount field. Do not round intermediate calculations.)TransactionFund / GovernmentalActivtiesGeneral JournalDebitCredit6. Adjusting entries were made and uncollected taxes receivable were reclassified as delinquent. At the fund level, entries were also made toclose budgetary and operating statement accounts. (Ignore closing entries in the government activities journal.)6aSerial Bond Debt Service Fund Record the entry to close the budgetary statement account.Budgetary Fund BalanceAppropriationsEstimated Other Financing SourcesEstimated Revenues6bShow Transcribed Text6cShow Transcribed Text6e6fGovernmental ActivitiesRecord the entry for classifying uncollectible accounts.ĆRecord the deferred inflows of resources.Expenses-Interest on Long-term debtInterest PayableRecord the entry for classifying uncollectible accounts.20,0001,416,250416,2501,020,000191,250191,250

A serial bond debt service fund is a type of fund that is established to manage the repayment of a…

Answered: D4. As of december 31, 2019, Sandy…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.23E: Unusual income statement items Assume that the amount of each of the following items is material to...

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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.

a-2. Prepare the closing entries. (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
Activties
General Journal
Debit
Credit
6. Adjusting entries were made and uncollected taxes receivable were reclassified as delinquent. At the fund level, entries were also made to
close budgetary and operating statement accounts. (Ignore closing entries in the government activities journal.)
6a
Serial Bond Debt Service Fund Record the entry to close the budgetary statement account.
Budgetary Fund Balance
Appropriations
Estimated Other Financing Sources
Estimated Revenues
6b
Show Transcribed Text
6c
Show Transcribed Text
6e
6f
Governmental Activities
Record the entry for classifying uncollectible accounts.
Ć
Record the deferred inflows of resources.
Expenses-Interest on Long-term debt
Interest Payable
Record the entry for classifying uncollectible accounts.
20,000
1,416,250
416,250
1,020,000
191,250
191,250

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