Village of Hawksbill issued $4,000,000 in 5 percent general obligation, tax-supported bonds on July 1, 2023, at a premium of 1.5 percent. A fiscal agent is not used. Resources for principal and interest payments are to come from the General Fund. Interest payment dates are December 31 and June 30. The first of 20 annual principal payments will be made on June 30, 2024. Hawksbill has a calendar fiscal year. A capital projects fund transferred the premium to the debt service fund. On December 31, 2023, funds in the amount of $100,000 were received from the General Fund, and the first interest payment was made. The books were closed for 2023. On June 30, 2024, funds in the amount of $240,000 were received from the General Fund, and the second interest payment ($100,000) was made along with the first principal payment ($200,000). On December 31, 2024, funds in the amount of $95,000 were recei
Village of Hawksbill issued $4,000,000 in 5 percent general obligation, tax-supported bonds on July 1, 2023, at a premium of 1.5 percent. A fiscal agent is not used. Resources for principal and interest payments are to come from the General Fund. Interest payment dates are December 31 and June 30. The first of 20 annual principal payments will be made on June 30, 2024. Hawksbill has a calendar fiscal year. A capital projects fund transferred the premium to the debt service fund. On December 31, 2023, funds in the amount of $100,000 were received from the General Fund, and the first interest payment was made. The books were closed for 2023. On June 30, 2024, funds in the amount of $240,000 were received from the General Fund, and the second interest payment ($100,000) was made along with the first principal payment ($200,000). On December 31, 2024, funds in the amount of $95,000 were recei
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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3.)
The Village of Hawksbill issued $4,000,000 in 5 percent general obligation, tax-supported bonds on July 1, 2023, at a premium of 1.5 percent. A fiscal agent is not used. Resources for principal and interest payments are to come from the General Fund. Interest payment dates are December 31 and June 30. The first of 20 annual principal payments will be made on June 30, 2024. Hawksbill has a calendar fiscal year.
- A capital projects fund transferred the premium to the debt service fund.
- On December 31, 2023, funds in the amount of $100,000 were received from the General Fund, and the first interest payment was made.
- The books were closed for 2023.
- On June 30, 2024, funds in the amount of $240,000 were received from the General Fund, and the second interest payment ($100,000) was made along with the first principal payment ($200,000).
- On December 31, 2024, funds in the amount of $95,000 were received from the General Fund, and the third interest payment was made (also in the amount of $95,000).
- The books were closed for 2024.
Required:
-
Prepare
journal entries to record the events above in the debt service fund. -
Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the debt service fund for the year ended December 31, 2023.
-
Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the debt service fund for the year ended December 31, 2024.
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