Question 5 Not complete Marked out of 7.14 Flag 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.) 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. 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. 1 Fund = Description Debit Credit 0 0 To record transfer out to Debt Service Fund. = ÷ 0 0 To record receipt of transfer funds. 2 = Expenditures interest 0 0 ÷ 0 0 Matured interest payable 0 0 = 0 3 ÷ Matured interest payable 0 ÷ 0 ÷ 0 4 = Expenditures interest 0 0 ÷ 0 0 Matured interest payable 0 0 ÷ 0 0 To record maturing of debt service. ÷ Matured interest payable 0 = 0 Check To record payment of debt service. Previous Save Answers eBook Print Next >
Question 5 Not complete Marked out of 7.14 Flag 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.) 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. 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. 1 Fund = Description Debit Credit 0 0 To record transfer out to Debt Service Fund. = ÷ 0 0 To record receipt of transfer funds. 2 = Expenditures interest 0 0 ÷ 0 0 Matured interest payable 0 0 = 0 3 ÷ Matured interest payable 0 ÷ 0 ÷ 0 4 = Expenditures interest 0 0 ÷ 0 0 Matured interest payable 0 0 ÷ 0 0 To record maturing of debt service. ÷ Matured interest payable 0 = 0 Check To record payment of debt service. Previous Save Answers eBook Print Next >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question 5 Not complete
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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.)
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.
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.
1
Fund
=
Description
Debit
Credit
0
0
To record transfer out to Debt Service Fund.
=
÷
0
0
To record receipt of transfer funds.
2
=
Expenditures interest
0
0
÷
0
0
Matured interest payable
0
0
=
0
3
÷
Matured interest payable
0
÷
0
÷
0
4
=
Expenditures interest
0
0
÷
0
0
Matured interest payable
0
0
÷
0
0
To record maturing of debt service.
÷
Matured interest payable
0
=
0
Check
To record payment of debt service.
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