ACCT. FOR GOV.&NONPROF. ENTITIES>CUSTOM
18th Edition
ISBN: 9781307515596
Author: RECK
Publisher: MCG/CREATE
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Chapter 5, Problem 17.8EP
Callaway County issued $10,000,000 in bonds at 101 for the purpose of constructing a new County Recreation Center. State law requires that any premium on bond issues be deposited directly in a debt service fund for eventual repayment of bond principal. The
- a. Credit to Bonds Payable in the capital projects fund.
- b. Credit to Other Financing Sources—Proceeds of Bonds in the capital projects fund.
- c. Credit to Other Financing Sources—Premium on Bonds in the debt service fund.
- d. Both b and c are correct.
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Students have asked these similar questions
Ibri township issued the following bonds during the year.
The bond issued to purchase equipment for vehicle repair service that is accounted for in an internal service fund RO 30,000,
The bonds issued to construct a new city hall RO 10,000
The bonds issued to improve its water utility, which is accounted for in an enterprise fund RO 50,000.
The amount of bond issued to be reported in the general fund is
a.
RO 10,000
b.
RO 50,000
c.
None of the options
d.
RO 30,000
Determine the correct debit account from among the choices below:
a. Expenditures
b. Extraordinary Items
c. Encumbrances
d. Answer not included in the above selections
The Debt Service Fund recognizes a principal payment that is currently due on a Bond debt.
Answer 1
A contract is signed with ABC Construction for a project related to the Capital Projects Fund in the amount of $8,400,000.
Answer 2
The city invests 30% of the bond proceeds in short term investments.
Answer 3
A city’s water supply is contaminated by terrorists. Costs of clean-up, disposal, and importation of a fresh water supply total $50,000,000.
Answer 4
The General Fund incurs and pays salaries totaling $400,000.
Answer 5
5.
2. The City of Paradise issued Bonds of $1,250,000 for the Construction of a City Hall. The City Hall’s bonds are sold at a premium of $150,000; therefore the estimated cost of the Hall is $1,100,000. Required:
a. Prepare general journal entries to record the issue of the bonds by General Fund.
b. Prepare general journal entries to transfer the premium amount to the debt service fund.
Chapter 5 Solutions
ACCT. FOR GOV.&NONPROF. ENTITIES>CUSTOM
Ch. 5 - What are general capital assets? How are they...Ch. 5 - Explain what disclosures the GASB requires for...Ch. 5 - Prob. 3QCh. 5 - Prob. 4QCh. 5 - Prob. 5QCh. 5 - What is the accounting difference between using...Ch. 5 - Prob. 7QCh. 5 - Prob. 8QCh. 5 - Prob. 9QCh. 5 - What is a service concession arrangement, and why...
Ch. 5 - Prob. 13CCh. 5 - Prob. 14CCh. 5 - Prob. 15CCh. 5 - Under GASB standards, which of the following would...Ch. 5 - Two new copiers were purchased for use by the city...Ch. 5 - Maxim County just completed construction of a new...Ch. 5 - A capital projects fund would probably not be used...Ch. 5 - Machinery and equipment depreciation expense for...Ch. 5 - Prob. 17.6EPCh. 5 - Prob. 17.7EPCh. 5 - Callaway County issued 10,000,000 in bonds at 101...Ch. 5 - Neighborville enters into a lease agreement for...Ch. 5 - Neighborville enters into a lease agreement for...Ch. 5 - Prob. 17.11EPCh. 5 - Prob. 17.12EPCh. 5 - Prob. 17.13EPCh. 5 - Arbitrage rules under the Internal Revenue Code a....Ch. 5 - Prob. 17.15EPCh. 5 - Make all necessary entries in the appropriate...Ch. 5 - Prob. 19EPCh. 5 - Prob. 20EPCh. 5 - In the current year, the building occupied by...Ch. 5 - Prob. 22EPCh. 5 - Make all necessary entries in a capital projects...Ch. 5 - The year-end pre-closing trial balance for the...Ch. 5 - Prob. 25EPCh. 5 - This year Riverside began work on an outdoor...
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