As of December 31, 2022, Sandy Beach had $8,300,000 in 5.0 percent serial bonds outstanding. Cash of $443,000 is the debt service fund's only asset as of December 31, 2022, 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.
As of December 31, 2022, Sandy Beach had $8,300,000 in 5.0 percent serial bonds outstanding. Cash of $443,000 is the debt service fund's only asset as of December 31, 2022, 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Transcribed Image Text: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 Activities
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.
6b
6c
6d
бе
6f
Governmental Activities
Record the entry for classifying uncollectible accounts.
Record the deferred inflows of resources.
Record the entry to close the operating statement account.
Record the entry for classifying uncollectible accounts.
![12
Part 1 of 3
Required information
[The following information applies to the questions displayed below.]
As of December 31, 2022, Sandy Beach had $8,300,000 in 5.0 percent serial bonds outstanding. Cash of $443,000 is the
debt service fund's only asset as of December 31, 2022, 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.
Required
a-1. Prepare debt service fund and government-wide entries in general journal form to reflect, as necessary, the following information
and transactions for FY 2023. (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
1. The operating budget for FY 2023 consists of estimated revenues of $1,100,000 and estimated other financing sources equal to the amount of
interest to be paid in FY 2023. Appropriations must be provided for interest payments and bond redemptions on January 1 and July 1.
Serial Bond Debt Service Fund
1
2. Cash was received from the General Fund and checks were written and mailed for the January 1 principal and interest payments.
2a Serial Bond Debt Service Fund
Record cash received from the general fund.
2b
2c
Governmental Activities
Governmental Activities
3. Property taxes in the amount of $1,100,000 were levied (no estimate for uncollectible accounts has been made).
Serial Bond Debt Service Fund
3
5b
5c
Governmental Activities
4. Property taxes in the amount of $1,098,000 were collected.
4
Serial Bond Debt Service Fund
Record principal and interest paid.
Governmental Activities
5. Cash was received from the General Fund and checks were written and mailed for the July 1 principal and interest payments.
5a Serial Bond Debt Service Fund
Record cash received from the general fund.
Governmental Activities
Record principal and interest paid.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F397a03a4-5558-47da-952e-9091e568a307%2Ff4507cc4-8af6-485c-93e0-682e29e8a9a3%2Fwo18s78_processed.png&w=3840&q=75)
Transcribed Image Text:12
Part 1 of 3
Required information
[The following information applies to the questions displayed below.]
As of December 31, 2022, Sandy Beach had $8,300,000 in 5.0 percent serial bonds outstanding. Cash of $443,000 is the
debt service fund's only asset as of December 31, 2022, 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.
Required
a-1. Prepare debt service fund and government-wide entries in general journal form to reflect, as necessary, the following information
and transactions for FY 2023. (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
1. The operating budget for FY 2023 consists of estimated revenues of $1,100,000 and estimated other financing sources equal to the amount of
interest to be paid in FY 2023. Appropriations must be provided for interest payments and bond redemptions on January 1 and July 1.
Serial Bond Debt Service Fund
1
2. Cash was received from the General Fund and checks were written and mailed for the January 1 principal and interest payments.
2a Serial Bond Debt Service Fund
Record cash received from the general fund.
2b
2c
Governmental Activities
Governmental Activities
3. Property taxes in the amount of $1,100,000 were levied (no estimate for uncollectible accounts has been made).
Serial Bond Debt Service Fund
3
5b
5c
Governmental Activities
4. Property taxes in the amount of $1,098,000 were collected.
4
Serial Bond Debt Service Fund
Record principal and interest paid.
Governmental Activities
5. Cash was received from the General Fund and checks were written and mailed for the July 1 principal and interest payments.
5a Serial Bond Debt Service Fund
Record cash received from the general fund.
Governmental Activities
Record principal and interest paid.
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