Santa Maria Village received voter approval to issue bonds for construction of a bike path, including restrooms and picnic shelters, along village oceanfront. The finance department has discussed three different financing mechanisms. As a new accountant for the village, you want to be prepared to record each option. Required Prepare journal entries for capital projects fund and the government-wide governmental activities general journal for each of the following unrelated transactions. (The General Fund should not be used.) (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Fund/ Governmental Transaction General Journal Debit Activities 1. The village sells $3,600,000 of 3 percent construction-related bonds at par. The construction is related to governmental activities. Capital Projects Fund Record the sale of $3,600,000 3% construction-related bonds at par in connection with governmental activities in Capital Projects Fund. 1 Govemmental Activities Credit Record the sale of $3,600,000 3% construction-related bonds at par in connection with governmental activities in Governmental Activities 2. The village secures a bond anticipation note payable in the amount of $166,000 to pay initial expenses. This note is considered short-term Capital Projects Fund Record the payment of $166,000 initial expenses on the short-term note payable in Capital Projects Fund. 2
Santa Maria Village received voter approval to issue bonds for construction of a bike path, including restrooms and picnic shelters, along village oceanfront. The finance department has discussed three different financing mechanisms. As a new accountant for the village, you want to be prepared to record each option. Required Prepare journal entries for capital projects fund and the government-wide governmental activities general journal for each of the following unrelated transactions. (The General Fund should not be used.) (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Fund/ Governmental Transaction General Journal Debit Activities 1. The village sells $3,600,000 of 3 percent construction-related bonds at par. The construction is related to governmental activities. Capital Projects Fund Record the sale of $3,600,000 3% construction-related bonds at par in connection with governmental activities in Capital Projects Fund. 1 Govemmental Activities Credit Record the sale of $3,600,000 3% construction-related bonds at par in connection with governmental activities in Governmental Activities 2. The village secures a bond anticipation note payable in the amount of $166,000 to pay initial expenses. This note is considered short-term Capital Projects Fund Record the payment of $166,000 initial expenses on the short-term note payable in Capital Projects Fund. 2
Chapter6: Business Expenses
Section: Chapter Questions
Problem 78IIP
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Transcribed Image Text:Santa Maria Village received voter approval to issue bonds for construction of a bike path, including restrooms and picnic shelters,
along village oceanfront. The finance department has discussed three different financing mechanisms. As a new accountant for the
village, you want to be prepared to record each option.
Required
Prepare journal entries for capital projects fund and the government-wide governmental activities general journal for each of the
following unrelated transactions. (The General Fund should not be used.) (If no entry is required for a transaction/event, select "No
Journal Entry Required" in the first account field.)
Fund/ Governmental
Transaction
General Journal
Debit
Activities
1. The village sells $3,600,000 of 3 percent construction-related bonds at par. The construction is related to governmental activities.
Capital Projects Fund
Record the sale of $3,600,000 3% construction-related bonds at par in connection with governmental
activities in Capital Projects Fund.
Govemmental
Activities
2
Credit
Record the sale of $3,600,000 3% construction-related bonds at par in connection with governmental
activities in Governmental Activities.
2. The village secures a bond anticipation note payable in the amount of $166,000 to pay initial expenses. This note is considered short-term
Capital Projects Fund Record the payment of $166,000 initial expenses on the short-term note payable in Capital Projects Fund.
Transcribed Image Text:2. The village secures a bond anticipation note payable in the amount of $166,000 to pay initial expenses. This note is considered short-term
Capital Projects Fund Record the payment of $166,000 initial expenses on the short-term note payable in Capital Projects Fund.
2
Governmental
Activities
Record the payment of $166,000 initial expenses on the short-term note payable in Governmental Activities.
3. The village secures a bond anticipation note in the amount of $660,000 to pay initial expenses for construction of a convention center. The debt is
considered long-term.
3
Capital Projects Fund
Governmental
Activities
Record the payment of $660,000 initial expenses for construction of convention center on the long-term note
payable in Capital Projects Fund.
Record the payment of $660,000 initial expenses for construction of convention center on the long-term note
payable in Govemmental Activities.
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