ance highway construction. Prepare the appropriate journal entry, if any, for the Fund Financial Statements for the following transactions; 1 (a) The issuance of the BAN on 12/1/20 assuming sufficient evidence does not exist of the state’s ability to refinance the BAN on 1/30/21. (b) Assuming the state is unable to refinance the BAN, the entry on 1/30/21 to repay the principal of $200,000. 2 (a) The issuance of the BAN on 12/1/20 assuming sufficient evidence exists of the state’s ability to refinance the BAN on 1/30/21. (b) Assuming the state is able to refinance the BAN, the entry on 1/30/21 to issue a long term bond in place of the BAN. B. Redo part A assuming the journal entries are for the Government Wide Financial Statements.
A. In anticipation of issuing a long-term bond, on 12/1/20 a state issues a $200,000 60-day BAN to
finance highway construction. Prepare the appropriate
Statements for the following transactions;
1 (a) The issuance of the BAN on 12/1/20 assuming sufficient evidence does not exist of the state’s
ability to refinance the BAN on 1/30/21.
(b) Assuming the state is unable to refinance the BAN, the entry on 1/30/21 to repay the principal
of $200,000.
2 (a) The issuance of the BAN on 12/1/20 assuming sufficient evidence exists of the state’s
ability to refinance the BAN on 1/30/21.
(b) Assuming the state is able to refinance the BAN, the entry on 1/30/21 to issue a long term
bond in place of the BAN.
B. Redo part A assuming the journal entries are for the Government Wide Financial Statements.
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