A municipality issues 750 municipal bonds with a par value of $500 each. The bonds pay 5% annual interest. What is the total amount of capital raised? A) $375,000 B) $393,750 c) $18,750 per year D) $356,250
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- What is the total amount of capital raised on these financial accounting question?Lisa County issued $5,000,000 of general obligation bonds at 101 to finance a capital project. The $50,000 premium was to be used for payment of interest. The transactions involving the premium should be accounted for in thea. capital projects funds, the debt service funds, and the general long-termdebt account group.b. capital projects funds and debt service funds only.c. debt service funds and the general long-term debt account group only.d. debt service funds only.Japes City issued $1,000,000 general obligation bonds at 101 to build a new city hall. As part of the bond issue, the city also paid a $500 underwriter fee and $2,000 in debt issue costs. What amount should Japes City report as other financing sources? A.) $1,010,000 B.) $1,008,000 C.) $1,007,500 D.) $1,000,000
- 1. The township issues $5.0 million in bonds at a premium of $.40 million and incurs $.18 million in issue costs. The premium, net of issue costs, is transferred to a newly established debt service fund.2. The township receives $2.0 million in cash from the state for the reimbursement grant in anticipation that the township will incur at least $2.0 million in construction costs.3. The township pays $5.9 million to invest in short-term (less than one year) securities.4. The township issues purchase orders and signs construction contracts for $ 7.9 million.5. The township sells $4.0 million of its investments for $4.4 million.6. The township receives invoices totaling $6.2 million. As permitted by its agreement with its prime contractor, the township retains S.7 million pending satisfactory completion7. 8. The township recognizes the revenue earned from the reimbursement grant.9. Anticipating that the project will be completed in the following year, ABC Construction Company pledges to…City Slicker Corporation pays $55,000 into a bond sinking fund each year for the future redemption of bonds. During the first year, the fund earns $1,475. When the bonds mature, there is a sinking fund balance of $612,000, and $600,000 is needed to redeem the bonds. Required:Prepare the following general journal entries. a. The initial sinking fund deposit. b. The first year's earnings. c. The redemption of the bonds. d. The return of excess cash to the corporation.A utility district has issued bonds totaling $4.7 Million with a fixed annual coupon rate of 4.00% and a term of 30 years. In addition to making the annual coupon payment, the district must deposit an additional annual amount (an equal amount each year beginning one year from the date of issuance) into a sinking fund so that the principle balance of $4.7 million will be on hand when the bonds come due. The district can earn 3.50% on its invested funds. What is the combined amount of money required for each year’s coupon payment and sinking fund payment? Submit whole number with no commas and no currency sign
- Margery Corp. received $100,000 in interest from a bank this year, $80,000 of municipal bond interest. Margery Corp. paid $5,000 of interest expense on loans it secured to purchase the municipal bonds. What is the total, net BTD associated with these investments? Group of answer choices $75,000 favorable, permanent $85,000 favorable, permanent $80,000 favorable, permanent $85,000 favorable, temporaryA bond issue was authorized by vote to provide funds for the construction of a new municipal building, which it was estimated would cost $1,070,000. The bods are to be paid in 10 equal installments from a debt service fund, and payments are due March 1 of each year.Construction and debt transactions can affect more than one fund. During 2021 Luling Township engaged in the following transactions related to modernizing the bridge over the Luling River. The township accounts for long-term construction projects in a capital projects fund.• On July 1 it issued 10-year, 4 percent bonds with a face value of $1 million. The bonds were sold for $1,016,510, an amount that provides an annual yield of 3.8 percent (semiannual rate of 1.9 percent). The city incurred $10,000 in issue costs.• On August 1, it was awarded a state reimbursement grant of $800,000. During the year it incurred allowable costs of $600,000. Of these it paid $500,000 in cash to various contractors. It received $450,000 from the state, expecting to receive, early in 2022, the $150,000 difference between allowable costs incurred and cash received. Moreover, it expects to receive the balance of the grant later in 2022. • It invested the bond proceeds in short-term federal securities. During…
- During fiscal year 2019, a municipality issued the following debt instruments: Tax anticipation notes : $2,500,000 Utility bonds : 3,000,000 General obligation bonds : 8,000,000 How much of this debt should be reported in the fund financial statement?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…5. 2. The City of Paradise issued Bonds of $1,250,000 for the Construction of a City Hall. The City Hall’s bonds are sold at a premium of $150,000; therefore the estimated cost of the Hall is $1,100,000. Required: a. Prepare general journal entries to record the issue of the bonds by General Fund. b. Prepare general journal entries to transfer the premium amount to the debt service fund.
