City of Smithville Street Improvement Bond Debt Service Fund Pre-closing Trial Balance For year 2020 Debits Credits $7,500 Cash Budgetary Fund Balance $7,500 12,500 20,000 Estimated Revenues-Accrued Interest on Bonds Sold Estimated Other Financing Sources-Premium on Bonds Other Financing Sources-Interfund Transfers In Appropriations 32,500 25,000 Expenditures-Bond Interest 25,000 Totals for all accounts $ 65,000 $ 65,000 The City of Smithville created a Street Improvement Bond Debt Service Fund to be used to retire the bonds issued for the purposes described in Chapter 5 of this cumulative problem, and to pay the interest on the bonds. The $2,000,000 face value of bonds issued during 2020 are dated January 1, 2020, but were not issued until April 1, 2020. Because bondholders will receive six months of interest on July 1, 2020 in the total amount of $25,000, they were required to pay $12,500 on the date of issue to pay the city for unearned interest from January 1 to April 1. The bonds bear interest of 2.5 percent per annum. The first interest payment of $25,000 is due July 1, 2020. Subsequent semiannual interest payments will be made January 1 and July 1 of each following year until the maturity of the bond. Bonds in the amount of $500,000 are to mature five years after the date of the bonds (January 1, 2025), and $100,000 is to mature January 1 of each year thereafter until all the bonds have been retired. Thus, these bonds are deferred serial bonds as discussed in Chapter 6 of the textbook. Make entries as instructed in the following paragraphs. what does the statement in revenues, expenditures, and changes in fund balance budget and actual look like?
City of Smithville Street Improvement Bond Debt Service Fund Pre-closing Trial Balance For year 2020 Debits Credits $7,500 Cash Budgetary Fund Balance $7,500 12,500 20,000 Estimated Revenues-Accrued Interest on Bonds Sold Estimated Other Financing Sources-Premium on Bonds Other Financing Sources-Interfund Transfers In Appropriations 32,500 25,000 Expenditures-Bond Interest 25,000 Totals for all accounts $ 65,000 $ 65,000 The City of Smithville created a Street Improvement Bond Debt Service Fund to be used to retire the bonds issued for the purposes described in Chapter 5 of this cumulative problem, and to pay the interest on the bonds. The $2,000,000 face value of bonds issued during 2020 are dated January 1, 2020, but were not issued until April 1, 2020. Because bondholders will receive six months of interest on July 1, 2020 in the total amount of $25,000, they were required to pay $12,500 on the date of issue to pay the city for unearned interest from January 1 to April 1. The bonds bear interest of 2.5 percent per annum. The first interest payment of $25,000 is due July 1, 2020. Subsequent semiannual interest payments will be made January 1 and July 1 of each following year until the maturity of the bond. Bonds in the amount of $500,000 are to mature five years after the date of the bonds (January 1, 2025), and $100,000 is to mature January 1 of each year thereafter until all the bonds have been retired. Thus, these bonds are deferred serial bonds as discussed in Chapter 6 of the textbook. Make entries as instructed in the following paragraphs. what does the statement in revenues, expenditures, and changes in fund balance budget and actual look like?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Accounting
Cash
$7,500
Budgetary Fund Balance
$ 7,500
12,500
20,000
Estimated Revenues-Accrued Interest on Bonds Sold
Estimated Other Financing Sources-Premium on Bonds
Other Financing Sources-Interfund Transfers In
Appropriations
32,500
25,000
Expenditures-Bond Interest
25,000
Totals for all accounts
$ 65,000
$ 65,000
The City of Smithville created a Street Improvement Bond Debt Service Fund to be used
to retire the bonds issued for the purposes described in Chapter 5 of this cumulative
problem, and to pay the interest on the bonds. The $2,000,000 face value of bonds issued
during 2020 are dated January 1, 2020, but were not issued until April 1, 2020. Because
bondholders will receive six months of interest on July 1, 2020 in the total amount of
$25,000, they were required to pay $12,500 on the date of issue to pay the city for
unearned interest from January 1 to April 1. The bonds bear interest of 2.5 percent per
annum. The first interest payment of $25,000 is due July 1, 2020. Subsequent
semiannual interest payments will be made January 1 and July 1 of each following year
until the maturity of the bond. Bonds in the amount of $500,000 are to mature five years
after the date of the bonds (January 1, 2025), and $100,000 is to mature January 1 of each
year thereafter until all the bonds have been retired. Thus, these bonds are deferred serial
bonds as discussed in Chapter 6 of the textbook. Make entries as instructed in the
following paragraphs.
what does the statement in revenues,
expenditures, and changes in fund balance
budget and actual look like?
City of Smithville
Street Improvement Bond Debt Service Fund
Pre-closing Trial Balance
For year 2020
Debits
Credits
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