A County had the following transactions. The county's fiscal year end is December 31. Analyze the effects of each transaction on the accounting equations of each fund or nonfund accounts affected by the transaction. 1. County issued $10 million of general obligation, 10%, 10-year bonds at 105 on October 1, 20X8. Bond interest is payable semiannually on March 31 and September 30. The bonds were issued to finance construction of a new county office building. 2. The county board of supervisors voted to use the premium on the bonds to pay principal and interest charges on the debt when it matures. Resources were transferred to the appropriate fund. 3. The county paid $2 million to Roger Construction Company during 20X8 for work completed during the year. 4. Reflect any interest accrual required or permitted at year end. 5. The county purchased a police vehicle for $22,000 and paid cash. 6. The county owned and operated electric utility billed residents and businesses $2,000,000 for electricity sales. 7. The county owned and operated electric utility billed other departments and agencies of the county $300,000 for electricity sales. 8. In 20X9 the county paid $2,000,000 from its general fund to the fund from which the bonds are to be repaid. The purpose of shifting the resources was to provide for the principal and interest payments to be made during the fiscal year. 9. The county paid the first interest payment on the bonds when due, March 31, 20X9. 10. The county paid the second interest payment on the bonds when due, September 30, 20X9, and also repaid $1 million of bond principal on that date. Also, Indicate how each transaction would be reported in the operating statement of each fund affected by the transaction.
A County had the following transactions. The county's fiscal year end is December 31. Analyze the effects of each transaction on the
1. County issued $10 million of general obligation, 10%, 10-year bonds at 105 on October 1, 20X8. Bond interest is payable semiannually on March 31 and September 30. The bonds were issued to finance construction of a new county office building.
2. The county board of supervisors voted to use the premium on the bonds to pay principal and interest charges on the debt when it matures. Resources were transferred to the appropriate fund.
3. The county paid $2 million to Roger Construction Company during 20X8 for work completed during the year.
4. Reflect any interest accrual required or permitted at year end. 5. The county purchased a police vehicle for $22,000 and paid cash.
6. The county owned and operated electric utility billed residents and businesses $2,000,000 for electricity sales.
7. The county owned and operated electric utility billed other departments and agencies of the county $300,000 for electricity sales.
8. In 20X9 the county paid $2,000,000 from its general fund to the fund from which the bonds are to be repaid. The purpose of shifting the resources was to provide for the principal and interest payments to be made during the fiscal year.
9. The county paid the first interest payment on the bonds when due, March 31, 20X9.
10. The county paid the second interest payment on the bonds when due, September 30, 20X9, and also repaid $1 million of bond principal on that date.
Also, Indicate how each transaction would be reported in the operating statement of each fund affected by the transaction.
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