payment were paid. on bonds sold by Croton in previous years came due and was pai column, select the appropriate fund in which the journal entry is r Description Debit Credit e to General Fund record transfer out to Debt Service Fund. from Debt Service Fund ansfer in from General Fund To record receipt of transfer funds. nditures-interest nditures-bond principal payment atured interest payable ash red interest payable are bond principal payable ash + 1200 1200 1200 1200
payment were paid. on bonds sold by Croton in previous years came due and was pai column, select the appropriate fund in which the journal entry is r Description Debit Credit e to General Fund record transfer out to Debt Service Fund. from Debt Service Fund ansfer in from General Fund To record receipt of transfer funds. nditures-interest nditures-bond principal payment atured interest payable ash red interest payable are bond principal payable ash + 1200 1200 1200 1200
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 26E: Sinking Funds Entries The following information is available concerning Nunan Corporations sinking...
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Question
![Journal entries for Debt Service Fund transactions
At the start of 2019, Croton's Debt Service Fund had no assets or liabilities. Prepare appropriate journal entries to record these transactions in the Debt Service Fund and where appropriate, in the General Fund. (We suggest
you post opening balances and the journal entries to general ledger T-accounts.)
Note: In the Fund column, select the appropriate fund in which the journal entry is recorded (General Fund: GF or Debt Service Fund: DSF).
Ref. Fund
Description
Debit
1
GF ◆
2
3
1. The General Fund transferred $1,200 cash to the Debt Service Fund.
2. The first installment of principal and interest on the bonds sold in Part C (1) came due for payment.
3. The principal and interest due for payment were paid.
4. Debt service on bonds sold by Croton in previous years came due and was paid. Principal and interest payments on those bonds were $600 and $470, respectively.
4
DSF →
DSF →
DSF →
DSF →
DSF →
◆
Due to General Fund
◆
To record transfer out to Debt Service Fund.
Due from Debt Service Fund
◆
Transfer in from General Fund
◆
To record receipt of transfer funds.
Expenditures - interest
Expenditures - bond principal payment
Matured interest payable
Cash
Cash
Matured interest payable
Mature bond principal payable
Cash
Expenditures - interest
Expenditures - bond principal payment
Matured interest payable
Cash
◆
Matured interest payable
Mature bond principal payable
Cash
◆
◆
◆
To record maturing of debt service.
To record payment of debt service.
1200
1200
Credit
1200
1200](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F19e49528-67dd-4aeb-a968-ea029577d9c0%2F8682c075-1579-4a6e-a9a9-827d2dcde4b0%2F0i5gkp_processed.png&w=3840&q=75)
Transcribed Image Text:Journal entries for Debt Service Fund transactions
At the start of 2019, Croton's Debt Service Fund had no assets or liabilities. Prepare appropriate journal entries to record these transactions in the Debt Service Fund and where appropriate, in the General Fund. (We suggest
you post opening balances and the journal entries to general ledger T-accounts.)
Note: In the Fund column, select the appropriate fund in which the journal entry is recorded (General Fund: GF or Debt Service Fund: DSF).
Ref. Fund
Description
Debit
1
GF ◆
2
3
1. The General Fund transferred $1,200 cash to the Debt Service Fund.
2. The first installment of principal and interest on the bonds sold in Part C (1) came due for payment.
3. The principal and interest due for payment were paid.
4. Debt service on bonds sold by Croton in previous years came due and was paid. Principal and interest payments on those bonds were $600 and $470, respectively.
4
DSF →
DSF →
DSF →
DSF →
DSF →
◆
Due to General Fund
◆
To record transfer out to Debt Service Fund.
Due from Debt Service Fund
◆
Transfer in from General Fund
◆
To record receipt of transfer funds.
Expenditures - interest
Expenditures - bond principal payment
Matured interest payable
Cash
Cash
Matured interest payable
Mature bond principal payable
Cash
Expenditures - interest
Expenditures - bond principal payment
Matured interest payable
Cash
◆
Matured interest payable
Mature bond principal payable
Cash
◆
◆
◆
To record maturing of debt service.
To record payment of debt service.
1200
1200
Credit
1200
1200
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