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The City of Amarillo is authorized to issue $3,600,000, 5 percent regular serial bonds in 2023 for the construction of a n exit off the interstate highway within city limits. The bonds mature in equal annual amounts beginning on January 1, 20 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. 1. Prepare the budgetary entries for 2023 assuming that the bonds were scheduled to be issued on January 2. Assun that the January 1, 2024, principal and interest payments will be included in the 2023 budget. Prepare the entry required to reflect the transfer of funds from the General Fund to the debt service fund. (You may ignore the entry the General Fund.) (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first

The City of Amarillo is authorized to issue $3,600,000, 5 percent regular serial bonds in 2023 for the construction of a n exit off the interstate highway within city limits. The bonds mature in equal annual amounts beginning on January 1, 20 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. 1. Prepare the budgetary entries for 2023 assuming that the bonds were scheduled to be issued on January 2. Assun that the January 1, 2024, principal and interest payments will be included in the 2023 budget. Prepare the entry required to reflect the transfer of funds from the General Fund to the debt service fund. (You may ignore the entry the General Fund.) (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first

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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The City of Amarillo is authorized to issue $3,600,000, 5 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. 1. 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 2023 budget. Prepare the entry required to reflect the transfer of funds from the General Fund to the debt service fund. (You may ignore the entry in the General Fund.) (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) It is NOT 90,000 or 180,000 - I have tried both of those and they are INCORRECT. Please do not provide old answers that give those numbers.
Transcribed Image Text:The City of Amarillo is authorized to issue $3,600,000, 5 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. 1. 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 2023 budget. Prepare the entry required to reflect the transfer of funds from the General Fund to the debt service fund. (You may ignore the entry in the General Fund.) (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) It is NOT 90,000 or 180,000 - I have tried both of those and they are INCORRECT. Please do not provide old answers that give those numbers.
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