The City of Amarillo is authorized to issue $6,000,000, 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.
The City of Amarillo is authorized to issue $6,000,000, 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject: acounting
Transcribed Image Text:The City of Amarillo is authorized to issue $6,000,000, 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.
Transcribed Image Text:f. 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.)
Transaction
Fund
1. Record the budget transaction.
1
Debt Service Fund
2. Record the transfer of funds.
2
Debt Service Fund
X Answer is not complete.
General Journal
Estimated Other Financing Sources-Transfers In
Appropriations
Cash
Other Financing Sources-Interfund Transfers In
Debit
Credit
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