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Falmouth City owns and operates a mini-bus system which it accounts for in an enterprise fund.  Prepare journal entries to record the following transactions, which occurred in a recent year. a)    The mini-bus system issued $5 million of 8 percent revenue bonds at par and used the proceeds to acquire new mini-buses. b)    As required by the bond covenant, the system set aside 1 percent of the gross bond proceeds for repair contingencies. c)    The system accrued 6 months interest on the revenue bonds at year-end. d)    The system incurred $30,000 of repair costs and paid for them with cash set aside for re

Falmouth City owns and operates a mini-bus system which it accounts for in an enterprise fund.  Prepare journal entries to record the following transactions, which occurred in a recent year. a)    The mini-bus system issued $5 million of 8 percent revenue bonds at par and used the proceeds to acquire new mini-buses. b)    As required by the bond covenant, the system set aside 1 percent of the gross bond proceeds for repair contingencies. c)    The system accrued 6 months interest on the revenue bonds at year-end. d)    The system incurred $30,000 of repair costs and paid for them with cash set aside for re

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Falmouth City owns and operates a mini-bus system which it accounts for in an enterprise fund.  Prepare journal entries to record the following transactions, which occurred in a recent year.

a)    The mini-bus system issued $5 million of 8 percent revenue bonds at par and used the proceeds to acquire new mini-buses.

b)    As required by the bond covenant, the system set aside 1 percent of the gross bond proceeds for repair contingencies.

c)    The system accrued 6 months interest on the revenue bonds at year-end.

d)    The system incurred $30,000 of repair costs and paid for them with cash set aside for repair contingencies

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