he City of Amarillo is authorized to issue $9,000,000, 3 percent regular serial bonds in 2023 for the construction of a new exit off the terstate highway within city limits. The bonds mature in equal annual amounts beginning on January 1, 2024, for 10 years and pay terest on January 1 and July 1. The city is required to use all accrued interest and premiums to service the debt. The funds to pay the terest will be transferred from the General Fund. The county's fiscal year-end is December 31. Pequired . Prepare the budgetary entries for 2023 assuming that the bonds were scheduled to be issued on January 2. Assume that the January 1, 2024, principal and interest payments will be included in the 2024 budget. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.)
he City of Amarillo is authorized to issue $9,000,000, 3 percent regular serial bonds in 2023 for the construction of a new exit off the terstate highway within city limits. The bonds mature in equal annual amounts beginning on January 1, 2024, for 10 years and pay terest on January 1 and July 1. The city is required to use all accrued interest and premiums to service the debt. The funds to pay the terest will be transferred from the General Fund. The county's fiscal year-end is December 31. Pequired . Prepare the budgetary entries for 2023 assuming that the bonds were scheduled to be issued on January 2. Assume that the January 1, 2024, principal and interest payments will be included in the 2024 budget. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The City of Amarillo is authorized to issue $9,000,000, 3 percent regular serial bonds in 2023 for the construction of a new exit off the
interstate highway within city limits. The bonds mature in equal annual amounts beginning on January 1, 2024, for 10 years and pay
interest on January 1 and July 1. The city is required to use all accrued interest and premiums to service the debt. The funds to pay the
interest will be transferred from the General Fund. The county's fiscal year-end is December 31.
Required
a. Prepare the budgetary entries for 2023 assuming that the bonds were scheduled to be issued on January 2. Assume that the
January 1, 2024, principal and interest payments will be included in the 2024 budget. (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
1. Record the budget transaction.
1
Debt Service Fund
✓ Answer is complete and correct.
General Journal
Estimated Other Financing Sources-Transfers In
Appropriations
Debit
✓ 135,000✔
✓
Credit
135,000 ✓✔
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