Prepare debt service fund and government wide entries in general journal form to record the transactions.

Question

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Answer 1

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 6, Problem 23EP

a.

To determine

Prepare debt service fund and government wide entries in general journal form to record the transactions.

a.

Expert Solution

Explanation of Solution

Government wide financial statements: This statement provides an aggregated overview of the government net position and their changes in the net position. This statement reports on the government as a whole and assess whether the government has used the resources efficiently and effectively (operational accountability) to meet the operating objectives.

Prepare debt service fund and government wide entries in general journal form to record the transactions:

Date	Account Title and Explanation	PostRef.	Debit ($)	Credit ($)
1.	Serial bond debt service fund:
	Estimated other financing sources		$416,250
	Estimated revenue		$1,020,000
	Appropriations			$1,416,250
	Budgetary fund balance			$20,000
	(To record the appropriations for interest payments and bond redemptions)

	Governmental activities:
	No entry.

2.	Serial bond debt service fund:
	Cash		$213,750
	Other financing sources –inter fund transfers in			$213,750
	(To record the receipt of cash from general fund)

	Expenditures –Bond interest		$213,750
	Expenditures –Bond principal		$500,000
	Cash			$713,750
	(To record the payment of interest expense and principal amount)

	Governmental activities:
	Interest Payable		$213,750
	Bonds Payable		$500,000
	Cash			$713,750
	(To record the payment of interest expense and principal amount)

3.	Serial bond debt service fund:
	Taxes receivable-current		$1,020,000
	Revenues			$1,020,000
	(To record the property taxes levied)

	Governmental activities:
	Taxes receivable-current		$1,020,000
	General Revenues- Property taxes			$1,020,000
	(To record the property taxes levied)

4.	Serial bond debt service fund:
	Cash		$1,019,000
	Taxes receivable-current			$1,019,000
	(To record the property taxes levied)

	Governmental activities:
	Cash		$1,019,000
	Taxes receivable-current			$1,019,000
	(To record the property taxes levied)

5.	Serial bond debt service fund:
	Cash		$202,500
	Other financing sources –inter fund transfers in			$202,500
	(To record the receipt of cash from general fund)

	Expenditures –Bond interest		$202,500
	Expenditures –Bond principal		$500,000
	Cash			$702,500
	(To record the payment of interest expense and principal amount)

	Governmental activities:
	Interest on long term debt		$202,500
	Bonds Payable		$500,000
	Cash			$702,500
	(To record the payment of interest expense and principal amount)

6.	Serial bond debt service fund:
	Budgetary fund balance		$20,000
	Appropriations		$1,416,250
	Estimated other financing sources			$416,250
	Estimated revenue			$1,020,000
	(To record the closing entry)

	Taxes receivable—delinquent		$1,000
	Taxes receivable—current			$1,000
	(To record adjustment for uncollected taxes)

	Revenues		$1,000
	Deferred inflows of resources - unavailable revenues			$1,000
	(To record the closing entry)

	Other financing sources-inter fund transfers in		$416,250
	Revenues		$1,019,000
	Expenditures—bond interest			$416,250
	Expenditures—bond principal			$1,000,000
	Fund balance—restricted			$19,000
	(To record the closing entry)

	Governmental activities:
	Expenses—interest on long–term debt		$191,250
	Interest payable			$191,250
	(To record the interest expense)

	Taxes receivable—delinquent		$1,000
	Taxes receivable—current			$1,000
	(To record adjustment for uncollected taxes)

Table (1)

b.

To determine

Prepare a statement of revenues, expenditures and changes in fund balances for the debt service fund for the year ended December 31, 2020.

b.

Expert Solution

Explanation of Solution

Debt service fund: The debt service fund is a fund that provides government to account for transactions related with the payment of principle and interest on its liabilities or debt.

Prepare a statement of revenues, expenditures and changes in fund balances for the debt service fund for the year ended December 31, 2020:

Company SB
Debt service fund
Statement of revenues, expenditures and Changes in fund balances
For the year ended December 31, 2020
Particulars	Amount	Amount
Revenues:
Property taxes		$1,019,000
Expenditures:
Bond interest	$416,250
Bond principal	$1,000,000
Less: Total expenditures		($1,416,250)
Excess of expenditures under revenues		$397,250
Other financing sources (uses):
Inter fund transfers in		($416,250)
Increase in fund balances		$19,000
Fund balances, July 1, 2020		$509,000
Fund balances, December 31, 2020		$528,000

Table (2)

c.

To determine

Prepare a balance sheet for the debt service fund for the year ended December 31, 2020.

c.

Expert Solution

Explanation of Solution

Balance sheet: Balance Sheet is one of the financial statements that summarize the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business.

Prepare a balance sheet for the debt service fund for the year ended December 31, 2020:

Company SB
Debt service fund
Balance sheet
As on December 31, 2020
Particulars	Amount	Amount
Assets:
Cash		$528,000
Taxes receivable -delinquent		$1,000
Total assets		$529,000
Deferred inflows of resources:
Unavailable revenues		$1,000
Fund balances:
Fund balance- restricted for debt service		$528,000
Total deferred inflows of resources and fund balance		$529,000

Table (3)

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Students have asked these similar questions

Required information [The following information applies to the questions displayed below.] As of December 31, 2019, Sandy Beach had $8,300,000 in 5.0 percent serial bonds outstanding. Cash of $443,000 is the debt service fund's only asset as of December 31, 2019, and there are no liabilities. The serial bonds pay interest semiannually on January 1 and July 1, with $500,000 in bonds being retired on each interest payment date. Resources for payment of Interest are transferred from the General Fund, and the debt service fund levies property taxes in an amount sufficient to cover principal payments. c. Prepare a balance sheet for the debt service fund as of December 31, 2020. Cash Total Assets SANDY BEACH Debt Service Fund Balance Sheet December 31, 2020 Assets Deferred Inflows of Resources Fund Balances S Total Deferred Inflows of Resources and Fund Balance S 0 0

As of December 31, 2019, Sandy Beach had $8,300,000 in 5.0 percent serial bonds outstanding. Cash of $443,000 is the debt service fund's only asset as of December 31, 2019, and there are no liabilities. The serial bonds pay interest semiannually on January 1 and July 1, with $500,000 in bonds being retired on each interest payment date. Resources for payment of Interest are transferred from the General Fund, and the debt service fund levies property taxes in an amount sufficient to cover principal payments. c. Prepare a balance sheet for the debt service fund as of December 31, 2020. Cash Total Assets SANDY BEACH Debt Service Fund Balance Sheet December 31, 2020 Assets S Deferred Inflows of Resources Fund Balances Total Deferred Inflows of Resources and Fund Balance S 0 0

Subj:

Answer 2

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 6, Problem 23EP

a.

To determine

Prepare debt service fund and government wide entries in general journal form to record the transactions.

a.

Expert Solution

Explanation of Solution

Government wide financial statements: This statement provides an aggregated overview of the government net position and their changes in the net position. This statement reports on the government as a whole and assess whether the government has used the resources efficiently and effectively (operational accountability) to meet the operating objectives.

Prepare debt service fund and government wide entries in general journal form to record the transactions:

Date	Account Title and Explanation	PostRef.	Debit ($)	Credit ($)
1.	Serial bond debt service fund:
	Estimated other financing sources		$416,250
	Estimated revenue		$1,020,000
	Appropriations			$1,416,250
	Budgetary fund balance			$20,000
	(To record the appropriations for interest payments and bond redemptions)

	Governmental activities:
	No entry.

2.	Serial bond debt service fund:
	Cash		$213,750
	Other financing sources –inter fund transfers in			$213,750
	(To record the receipt of cash from general fund)

	Expenditures –Bond interest		$213,750
	Expenditures –Bond principal		$500,000
	Cash			$713,750
	(To record the payment of interest expense and principal amount)

	Governmental activities:
	Interest Payable		$213,750
	Bonds Payable		$500,000
	Cash			$713,750
	(To record the payment of interest expense and principal amount)

3.	Serial bond debt service fund:
	Taxes receivable-current		$1,020,000
	Revenues			$1,020,000
	(To record the property taxes levied)

	Governmental activities:
	Taxes receivable-current		$1,020,000
	General Revenues- Property taxes			$1,020,000
	(To record the property taxes levied)

4.	Serial bond debt service fund:
	Cash		$1,019,000
	Taxes receivable-current			$1,019,000
	(To record the property taxes levied)

	Governmental activities:
	Cash		$1,019,000
	Taxes receivable-current			$1,019,000
	(To record the property taxes levied)

5.	Serial bond debt service fund:
	Cash		$202,500
	Other financing sources –inter fund transfers in			$202,500
	(To record the receipt of cash from general fund)

	Expenditures –Bond interest		$202,500
	Expenditures –Bond principal		$500,000
	Cash			$702,500
	(To record the payment of interest expense and principal amount)

	Governmental activities:
	Interest on long term debt		$202,500
	Bonds Payable		$500,000
	Cash			$702,500
	(To record the payment of interest expense and principal amount)

6.	Serial bond debt service fund:
	Budgetary fund balance		$20,000
	Appropriations		$1,416,250
	Estimated other financing sources			$416,250
	Estimated revenue			$1,020,000
	(To record the closing entry)

	Taxes receivable—delinquent		$1,000
	Taxes receivable—current			$1,000
	(To record adjustment for uncollected taxes)

	Revenues		$1,000
	Deferred inflows of resources - unavailable revenues			$1,000
	(To record the closing entry)

	Other financing sources-inter fund transfers in		$416,250
	Revenues		$1,019,000
	Expenditures—bond interest			$416,250
	Expenditures—bond principal			$1,000,000
	Fund balance—restricted			$19,000
	(To record the closing entry)

	Governmental activities:
	Expenses—interest on long–term debt		$191,250
	Interest payable			$191,250
	(To record the interest expense)

	Taxes receivable—delinquent		$1,000
	Taxes receivable—current			$1,000
	(To record adjustment for uncollected taxes)

Table (1)

b.

To determine

Prepare a statement of revenues, expenditures and changes in fund balances for the debt service fund for the year ended December 31, 2020.

b.

Expert Solution

Explanation of Solution

Debt service fund: The debt service fund is a fund that provides government to account for transactions related with the payment of principle and interest on its liabilities or debt.

Prepare a statement of revenues, expenditures and changes in fund balances for the debt service fund for the year ended December 31, 2020:

Company SB
Debt service fund
Statement of revenues, expenditures and Changes in fund balances
For the year ended December 31, 2020
Particulars	Amount	Amount
Revenues:
Property taxes		$1,019,000
Expenditures:
Bond interest	$416,250
Bond principal	$1,000,000
Less: Total expenditures		($1,416,250)
Excess of expenditures under revenues		$397,250
Other financing sources (uses):
Inter fund transfers in		($416,250)
Increase in fund balances		$19,000
Fund balances, July 1, 2020		$509,000
Fund balances, December 31, 2020		$528,000

Table (2)

c.

To determine

Prepare a balance sheet for the debt service fund for the year ended December 31, 2020.

c.

Expert Solution

Explanation of Solution

Balance sheet: Balance Sheet is one of the financial statements that summarize the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business.

Prepare a balance sheet for the debt service fund for the year ended December 31, 2020:

Company SB
Debt service fund
Balance sheet
As on December 31, 2020
Particulars	Amount	Amount
Assets:
Cash		$528,000
Taxes receivable -delinquent		$1,000
Total assets		$529,000
Deferred inflows of resources:
Unavailable revenues		$1,000
Fund balances:
Fund balance- restricted for debt service		$528,000
Total deferred inflows of resources and fund balance		$529,000

Table (3)

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Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 6, Problem 23EP

a.

To determine

Prepare debt service fund and government wide entries in general journal form to record the transactions.

a.

Expert Solution

Explanation of Solution

Government wide financial statements: This statement provides an aggregated overview of the government net position and their changes in the net position. This statement reports on the government as a whole and assess whether the government has used the resources efficiently and effectively (operational accountability) to meet the operating objectives.

Prepare debt service fund and government wide entries in general journal form to record the transactions:

Date	Account Title and Explanation	PostRef.	Debit ($)	Credit ($)
1.	Serial bond debt service fund:
	Estimated other financing sources		$416,250
	Estimated revenue		$1,020,000
	Appropriations			$1,416,250
	Budgetary fund balance			$20,000
	(To record the appropriations for interest payments and bond redemptions)

	Governmental activities:
	No entry.

2.	Serial bond debt service fund:
	Cash		$213,750
	Other financing sources –inter fund transfers in			$213,750
	(To record the receipt of cash from general fund)

	Expenditures –Bond interest		$213,750
	Expenditures –Bond principal		$500,000
	Cash			$713,750
	(To record the payment of interest expense and principal amount)

	Governmental activities:
	Interest Payable		$213,750
	Bonds Payable		$500,000
	Cash			$713,750
	(To record the payment of interest expense and principal amount)

3.	Serial bond debt service fund:
	Taxes receivable-current		$1,020,000
	Revenues			$1,020,000
	(To record the property taxes levied)

	Governmental activities:
	Taxes receivable-current		$1,020,000
	General Revenues- Property taxes			$1,020,000
	(To record the property taxes levied)

4.	Serial bond debt service fund:
	Cash		$1,019,000
	Taxes receivable-current			$1,019,000
	(To record the property taxes levied)

	Governmental activities:
	Cash		$1,019,000
	Taxes receivable-current			$1,019,000
	(To record the property taxes levied)

5.	Serial bond debt service fund:
	Cash		$202,500
	Other financing sources –inter fund transfers in			$202,500
	(To record the receipt of cash from general fund)

	Expenditures –Bond interest		$202,500
	Expenditures –Bond principal		$500,000
	Cash			$702,500
	(To record the payment of interest expense and principal amount)

	Governmental activities:
	Interest on long term debt		$202,500
	Bonds Payable		$500,000
	Cash			$702,500
	(To record the payment of interest expense and principal amount)

6.	Serial bond debt service fund:
	Budgetary fund balance		$20,000
	Appropriations		$1,416,250
	Estimated other financing sources			$416,250
	Estimated revenue			$1,020,000
	(To record the closing entry)

	Taxes receivable—delinquent		$1,000
	Taxes receivable—current			$1,000
	(To record adjustment for uncollected taxes)

	Revenues		$1,000
	Deferred inflows of resources - unavailable revenues			$1,000
	(To record the closing entry)

	Other financing sources-inter fund transfers in		$416,250
	Revenues		$1,019,000
	Expenditures—bond interest			$416,250
	Expenditures—bond principal			$1,000,000
	Fund balance—restricted			$19,000
	(To record the closing entry)

	Governmental activities:
	Expenses—interest on long–term debt		$191,250
	Interest payable			$191,250
	(To record the interest expense)

	Taxes receivable—delinquent		$1,000
	Taxes receivable—current			$1,000
	(To record adjustment for uncollected taxes)

Table (1)

b.

To determine

Prepare a statement of revenues, expenditures and changes in fund balances for the debt service fund for the year ended December 31, 2020.

b.

Expert Solution

Explanation of Solution

Debt service fund: The debt service fund is a fund that provides government to account for transactions related with the payment of principle and interest on its liabilities or debt.

Prepare a statement of revenues, expenditures and changes in fund balances for the debt service fund for the year ended December 31, 2020:

Company SB
Debt service fund
Statement of revenues, expenditures and Changes in fund balances
For the year ended December 31, 2020
Particulars	Amount	Amount
Revenues:
Property taxes		$1,019,000
Expenditures:
Bond interest	$416,250
Bond principal	$1,000,000
Less: Total expenditures		($1,416,250)
Excess of expenditures under revenues		$397,250
Other financing sources (uses):
Inter fund transfers in		($416,250)
Increase in fund balances		$19,000
Fund balances, July 1, 2020		$509,000
Fund balances, December 31, 2020		$528,000

Table (2)

c.

To determine

Prepare a balance sheet for the debt service fund for the year ended December 31, 2020.

c.

Expert Solution

Explanation of Solution

Balance sheet: Balance Sheet is one of the financial statements that summarize the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business.

Prepare a balance sheet for the debt service fund for the year ended December 31, 2020:

Company SB
Debt service fund
Balance sheet
As on December 31, 2020
Particulars	Amount	Amount
Assets:
Cash		$528,000
Taxes receivable -delinquent		$1,000
Total assets		$529,000
Deferred inflows of resources:
Unavailable revenues		$1,000
Fund balances:
Fund balance- restricted for debt service		$528,000
Total deferred inflows of resources and fund balance		$529,000

Table (3)

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Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 6, Problem 23EP

a.

To determine

Prepare debt service fund and government wide entries in general journal form to record the transactions.

a.

Expert Solution

Explanation of Solution

Government wide financial statements: This statement provides an aggregated overview of the government net position and their changes in the net position. This statement reports on the government as a whole and assess whether the government has used the resources efficiently and effectively (operational accountability) to meet the operating objectives.

Prepare debt service fund and government wide entries in general journal form to record the transactions:

Date	Account Title and Explanation	PostRef.	Debit ($)	Credit ($)
1.	Serial bond debt service fund:
	Estimated other financing sources		$416,250
	Estimated revenue		$1,020,000
	Appropriations			$1,416,250
	Budgetary fund balance			$20,000
	(To record the appropriations for interest payments and bond redemptions)

	Governmental activities:
	No entry.

2.	Serial bond debt service fund:
	Cash		$213,750
	Other financing sources –inter fund transfers in			$213,750
	(To record the receipt of cash from general fund)

	Expenditures –Bond interest		$213,750
	Expenditures –Bond principal		$500,000
	Cash			$713,750
	(To record the payment of interest expense and principal amount)

	Governmental activities:
	Interest Payable		$213,750
	Bonds Payable		$500,000
	Cash			$713,750
	(To record the payment of interest expense and principal amount)

3.	Serial bond debt service fund:
	Taxes receivable-current		$1,020,000
	Revenues			$1,020,000
	(To record the property taxes levied)

	Governmental activities:
	Taxes receivable-current		$1,020,000
	General Revenues- Property taxes			$1,020,000
	(To record the property taxes levied)

4.	Serial bond debt service fund:
	Cash		$1,019,000
	Taxes receivable-current			$1,019,000
	(To record the property taxes levied)

	Governmental activities:
	Cash		$1,019,000
	Taxes receivable-current			$1,019,000
	(To record the property taxes levied)

5.	Serial bond debt service fund:
	Cash		$202,500
	Other financing sources –inter fund transfers in			$202,500
	(To record the receipt of cash from general fund)

	Expenditures –Bond interest		$202,500
	Expenditures –Bond principal		$500,000
	Cash			$702,500
	(To record the payment of interest expense and principal amount)

	Governmental activities:
	Interest on long term debt		$202,500
	Bonds Payable		$500,000
	Cash			$702,500
	(To record the payment of interest expense and principal amount)

6.	Serial bond debt service fund:
	Budgetary fund balance		$20,000
	Appropriations		$1,416,250
	Estimated other financing sources			$416,250
	Estimated revenue			$1,020,000
	(To record the closing entry)

	Taxes receivable—delinquent		$1,000
	Taxes receivable—current			$1,000
	(To record adjustment for uncollected taxes)

	Revenues		$1,000
	Deferred inflows of resources - unavailable revenues			$1,000
	(To record the closing entry)

	Other financing sources-inter fund transfers in		$416,250
	Revenues		$1,019,000
	Expenditures—bond interest			$416,250
	Expenditures—bond principal			$1,000,000
	Fund balance—restricted			$19,000
	(To record the closing entry)

	Governmental activities:
	Expenses—interest on long–term debt		$191,250
	Interest payable			$191,250
	(To record the interest expense)

	Taxes receivable—delinquent		$1,000
	Taxes receivable—current			$1,000
	(To record adjustment for uncollected taxes)

Table (1)

b.

To determine

Prepare a statement of revenues, expenditures and changes in fund balances for the debt service fund for the year ended December 31, 2020.

b.

Expert Solution

Explanation of Solution

Debt service fund: The debt service fund is a fund that provides government to account for transactions related with the payment of principle and interest on its liabilities or debt.

Prepare a statement of revenues, expenditures and changes in fund balances for the debt service fund for the year ended December 31, 2020:

Company SB
Debt service fund
Statement of revenues, expenditures and Changes in fund balances
For the year ended December 31, 2020
Particulars	Amount	Amount
Revenues:
Property taxes		$1,019,000
Expenditures:
Bond interest	$416,250
Bond principal	$1,000,000
Less: Total expenditures		($1,416,250)
Excess of expenditures under revenues		$397,250
Other financing sources (uses):
Inter fund transfers in		($416,250)
Increase in fund balances		$19,000
Fund balances, July 1, 2020		$509,000
Fund balances, December 31, 2020		$528,000

Table (2)

c.

To determine

Prepare a balance sheet for the debt service fund for the year ended December 31, 2020.

c.

Expert Solution

Explanation of Solution

Balance sheet: Balance Sheet is one of the financial statements that summarize the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business.

Prepare a balance sheet for the debt service fund for the year ended December 31, 2020:

Company SB
Debt service fund
Balance sheet
As on December 31, 2020
Particulars	Amount	Amount
Assets:
Cash		$528,000
Taxes receivable -delinquent		$1,000
Total assets		$529,000
Deferred inflows of resources:
Unavailable revenues		$1,000
Fund balances:
Fund balance- restricted for debt service		$528,000
Total deferred inflows of resources and fund balance		$529,000

Table (3)

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Answer 5

Chapter 6, Problem 23EP

a.

To determine

Prepare debt service fund and government wide entries in general journal form to record the transactions.

a.

Expert Solution

Explanation of Solution

Government wide financial statements: This statement provides an aggregated overview of the government net position and their changes in the net position. This statement reports on the government as a whole and assess whether the government has used the resources efficiently and effectively (operational accountability) to meet the operating objectives.

Prepare debt service fund and government wide entries in general journal form to record the transactions:

Date	Account Title and Explanation	PostRef.	Debit ($)	Credit ($)
1.	Serial bond debt service fund:
	Estimated other financing sources		$416,250
	Estimated revenue		$1,020,000
	Appropriations			$1,416,250
	Budgetary fund balance			$20,000
	(To record the appropriations for interest payments and bond redemptions)

	Governmental activities:
	No entry.

2.	Serial bond debt service fund:
	Cash		$213,750
	Other financing sources –inter fund transfers in			$213,750
	(To record the receipt of cash from general fund)

	Expenditures –Bond interest		$213,750
	Expenditures –Bond principal		$500,000
	Cash			$713,750
	(To record the payment of interest expense and principal amount)

	Governmental activities:
	Interest Payable		$213,750
	Bonds Payable		$500,000
	Cash			$713,750
	(To record the payment of interest expense and principal amount)

3.	Serial bond debt service fund:
	Taxes receivable-current		$1,020,000
	Revenues			$1,020,000
	(To record the property taxes levied)

	Governmental activities:
	Taxes receivable-current		$1,020,000
	General Revenues- Property taxes			$1,020,000
	(To record the property taxes levied)

4.	Serial bond debt service fund:
	Cash		$1,019,000
	Taxes receivable-current			$1,019,000
	(To record the property taxes levied)

	Governmental activities:
	Cash		$1,019,000
	Taxes receivable-current			$1,019,000
	(To record the property taxes levied)

5.	Serial bond debt service fund:
	Cash		$202,500
	Other financing sources –inter fund transfers in			$202,500
	(To record the receipt of cash from general fund)

	Expenditures –Bond interest		$202,500
	Expenditures –Bond principal		$500,000
	Cash			$702,500
	(To record the payment of interest expense and principal amount)

	Governmental activities:
	Interest on long term debt		$202,500
	Bonds Payable		$500,000
	Cash			$702,500
	(To record the payment of interest expense and principal amount)

6.	Serial bond debt service fund:
	Budgetary fund balance		$20,000
	Appropriations		$1,416,250
	Estimated other financing sources			$416,250
	Estimated revenue			$1,020,000
	(To record the closing entry)

	Taxes receivable—delinquent		$1,000
	Taxes receivable—current			$1,000
	(To record adjustment for uncollected taxes)

	Revenues		$1,000
	Deferred inflows of resources - unavailable revenues			$1,000
	(To record the closing entry)

	Other financing sources-inter fund transfers in		$416,250
	Revenues		$1,019,000
	Expenditures—bond interest			$416,250
	Expenditures—bond principal			$1,000,000
	Fund balance—restricted			$19,000
	(To record the closing entry)

	Governmental activities:
	Expenses—interest on long–term debt		$191,250
	Interest payable			$191,250
	(To record the interest expense)

	Taxes receivable—delinquent		$1,000
	Taxes receivable—current			$1,000
	(To record adjustment for uncollected taxes)

Table (1)

b.

To determine

Prepare a statement of revenues, expenditures and changes in fund balances for the debt service fund for the year ended December 31, 2020.

b.

Expert Solution

Explanation of Solution

Debt service fund: The debt service fund is a fund that provides government to account for transactions related with the payment of principle and interest on its liabilities or debt.

Prepare a statement of revenues, expenditures and changes in fund balances for the debt service fund for the year ended December 31, 2020:

Company SB
Debt service fund
Statement of revenues, expenditures and Changes in fund balances
For the year ended December 31, 2020
Particulars	Amount	Amount
Revenues:
Property taxes		$1,019,000
Expenditures:
Bond interest	$416,250
Bond principal	$1,000,000
Less: Total expenditures		($1,416,250)
Excess of expenditures under revenues		$397,250
Other financing sources (uses):
Inter fund transfers in		($416,250)
Increase in fund balances		$19,000
Fund balances, July 1, 2020		$509,000
Fund balances, December 31, 2020		$528,000

Table (2)

c.

To determine

Prepare a balance sheet for the debt service fund for the year ended December 31, 2020.

c.

Expert Solution

Explanation of Solution

Balance sheet: Balance Sheet is one of the financial statements that summarize the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business.

Prepare a balance sheet for the debt service fund for the year ended December 31, 2020:

Company SB
Debt service fund
Balance sheet
As on December 31, 2020
Particulars	Amount	Amount
Assets:
Cash		$528,000
Taxes receivable -delinquent		$1,000
Total assets		$529,000
Deferred inflows of resources:
Unavailable revenues		$1,000
Fund balances:
Fund balance- restricted for debt service		$528,000
Total deferred inflows of resources and fund balance		$529,000

Table (3)

Answer 6

Chapter 6, Problem 23EP

a.

To determine

Prepare debt service fund and government wide entries in general journal form to record the transactions.

a.

Expert Solution

Explanation of Solution

Government wide financial statements: This statement provides an aggregated overview of the government net position and their changes in the net position. This statement reports on the government as a whole and assess whether the government has used the resources efficiently and effectively (operational accountability) to meet the operating objectives.

Prepare debt service fund and government wide entries in general journal form to record the transactions:

Date	Account Title and Explanation	PostRef.	Debit ($)	Credit ($)
1.	Serial bond debt service fund:
	Estimated other financing sources		$416,250
	Estimated revenue		$1,020,000
	Appropriations			$1,416,250
	Budgetary fund balance			$20,000
	(To record the appropriations for interest payments and bond redemptions)

	Governmental activities:
	No entry.

2.	Serial bond debt service fund:
	Cash		$213,750
	Other financing sources –inter fund transfers in			$213,750
	(To record the receipt of cash from general fund)

	Expenditures –Bond interest		$213,750
	Expenditures –Bond principal		$500,000
	Cash			$713,750
	(To record the payment of interest expense and principal amount)

	Governmental activities:
	Interest Payable		$213,750
	Bonds Payable		$500,000
	Cash			$713,750
	(To record the payment of interest expense and principal amount)

3.	Serial bond debt service fund:
	Taxes receivable-current		$1,020,000
	Revenues			$1,020,000
	(To record the property taxes levied)

	Governmental activities:
	Taxes receivable-current		$1,020,000
	General Revenues- Property taxes			$1,020,000
	(To record the property taxes levied)

4.	Serial bond debt service fund:
	Cash		$1,019,000
	Taxes receivable-current			$1,019,000
	(To record the property taxes levied)

	Governmental activities:
	Cash		$1,019,000
	Taxes receivable-current			$1,019,000
	(To record the property taxes levied)

5.	Serial bond debt service fund:
	Cash		$202,500
	Other financing sources –inter fund transfers in			$202,500
	(To record the receipt of cash from general fund)

	Expenditures –Bond interest		$202,500
	Expenditures –Bond principal		$500,000
	Cash			$702,500
	(To record the payment of interest expense and principal amount)

	Governmental activities:
	Interest on long term debt		$202,500
	Bonds Payable		$500,000
	Cash			$702,500
	(To record the payment of interest expense and principal amount)

6.	Serial bond debt service fund:
	Budgetary fund balance		$20,000
	Appropriations		$1,416,250
	Estimated other financing sources			$416,250
	Estimated revenue			$1,020,000
	(To record the closing entry)

	Taxes receivable—delinquent		$1,000
	Taxes receivable—current			$1,000
	(To record adjustment for uncollected taxes)

	Revenues		$1,000
	Deferred inflows of resources - unavailable revenues			$1,000
	(To record the closing entry)

	Other financing sources-inter fund transfers in		$416,250
	Revenues		$1,019,000
	Expenditures—bond interest			$416,250
	Expenditures—bond principal			$1,000,000
	Fund balance—restricted			$19,000
	(To record the closing entry)

	Governmental activities:
	Expenses—interest on long–term debt		$191,250
	Interest payable			$191,250
	(To record the interest expense)

	Taxes receivable—delinquent		$1,000
	Taxes receivable—current			$1,000
	(To record adjustment for uncollected taxes)

Table (1)

Answer 7

Chapter 6, Problem 23EP

a.

To determine

Prepare debt service fund and government wide entries in general journal form to record the transactions.

Answer 8

a.

Expert Solution

Explanation of Solution

Government wide financial statements: This statement provides an aggregated overview of the government net position and their changes in the net position. This statement reports on the government as a whole and assess whether the government has used the resources efficiently and effectively (operational accountability) to meet the operating objectives.

Prepare debt service fund and government wide entries in general journal form to record the transactions:

Date	Account Title and Explanation	PostRef.	Debit ($)	Credit ($)
1.	Serial bond debt service fund:
	Estimated other financing sources		$416,250
	Estimated revenue		$1,020,000
	Appropriations			$1,416,250
	Budgetary fund balance			$20,000
	(To record the appropriations for interest payments and bond redemptions)

	Governmental activities:
	No entry.

2.	Serial bond debt service fund:
	Cash		$213,750
	Other financing sources –inter fund transfers in			$213,750
	(To record the receipt of cash from general fund)

	Expenditures –Bond interest		$213,750
	Expenditures –Bond principal		$500,000
	Cash			$713,750
	(To record the payment of interest expense and principal amount)

	Governmental activities:
	Interest Payable		$213,750
	Bonds Payable		$500,000
	Cash			$713,750
	(To record the payment of interest expense and principal amount)

3.	Serial bond debt service fund:
	Taxes receivable-current		$1,020,000
	Revenues			$1,020,000
	(To record the property taxes levied)

	Governmental activities:
	Taxes receivable-current		$1,020,000
	General Revenues- Property taxes			$1,020,000
	(To record the property taxes levied)

4.	Serial bond debt service fund:
	Cash		$1,019,000
	Taxes receivable-current			$1,019,000
	(To record the property taxes levied)

	Governmental activities:
	Cash		$1,019,000
	Taxes receivable-current			$1,019,000
	(To record the property taxes levied)

5.	Serial bond debt service fund:
	Cash		$202,500
	Other financing sources –inter fund transfers in			$202,500
	(To record the receipt of cash from general fund)

	Expenditures –Bond interest		$202,500
	Expenditures –Bond principal		$500,000
	Cash			$702,500
	(To record the payment of interest expense and principal amount)

	Governmental activities:
	Interest on long term debt		$202,500
	Bonds Payable		$500,000
	Cash			$702,500
	(To record the payment of interest expense and principal amount)

6.	Serial bond debt service fund:
	Budgetary fund balance		$20,000
	Appropriations		$1,416,250
	Estimated other financing sources			$416,250
	Estimated revenue			$1,020,000
	(To record the closing entry)

	Taxes receivable—delinquent		$1,000
	Taxes receivable—current			$1,000
	(To record adjustment for uncollected taxes)

	Revenues		$1,000
	Deferred inflows of resources - unavailable revenues			$1,000
	(To record the closing entry)

	Other financing sources-inter fund transfers in		$416,250
	Revenues		$1,019,000
	Expenditures—bond interest			$416,250
	Expenditures—bond principal			$1,000,000
	Fund balance—restricted			$19,000
	(To record the closing entry)

	Governmental activities:
	Expenses—interest on long–term debt		$191,250
	Interest payable			$191,250
	(To record the interest expense)

	Taxes receivable—delinquent		$1,000
	Taxes receivable—current			$1,000
	(To record adjustment for uncollected taxes)

Table (1)

Answer 9

a.

Expert Solution

Answer 10

a.

Expert Solution

Answer 11

Expert Solution

Answer 12

b.

To determine

Prepare a statement of revenues, expenditures and changes in fund balances for the debt service fund for the year ended December 31, 2020.

b.

Expert Solution

Explanation of Solution

Debt service fund: The debt service fund is a fund that provides government to account for transactions related with the payment of principle and interest on its liabilities or debt.

Prepare a statement of revenues, expenditures and changes in fund balances for the debt service fund for the year ended December 31, 2020:

Company SB
Debt service fund
Statement of revenues, expenditures and Changes in fund balances
For the year ended December 31, 2020
Particulars	Amount	Amount
Revenues:
Property taxes		$1,019,000
Expenditures:
Bond interest	$416,250
Bond principal	$1,000,000
Less: Total expenditures		($1,416,250)
Excess of expenditures under revenues		$397,250
Other financing sources (uses):
Inter fund transfers in		($416,250)
Increase in fund balances		$19,000
Fund balances, July 1, 2020		$509,000
Fund balances, December 31, 2020		$528,000

Table (2)

Answer 13

b.

To determine

Prepare a statement of revenues, expenditures and changes in fund balances for the debt service fund for the year ended December 31, 2020.

Answer 14

b.

Expert Solution

Explanation of Solution

Debt service fund: The debt service fund is a fund that provides government to account for transactions related with the payment of principle and interest on its liabilities or debt.

Prepare a statement of revenues, expenditures and changes in fund balances for the debt service fund for the year ended December 31, 2020:

Company SB
Debt service fund
Statement of revenues, expenditures and Changes in fund balances
For the year ended December 31, 2020
Particulars	Amount	Amount
Revenues:
Property taxes		$1,019,000
Expenditures:
Bond interest	$416,250
Bond principal	$1,000,000
Less: Total expenditures		($1,416,250)
Excess of expenditures under revenues		$397,250
Other financing sources (uses):
Inter fund transfers in		($416,250)
Increase in fund balances		$19,000
Fund balances, July 1, 2020		$509,000
Fund balances, December 31, 2020		$528,000

Table (2)

Answer 15

b.

Expert Solution

Answer 16

b.

Expert Solution

Answer 17

Expert Solution

Answer 18

c.

To determine

Prepare a balance sheet for the debt service fund for the year ended December 31, 2020.

c.

Expert Solution

Explanation of Solution

Balance sheet: Balance Sheet is one of the financial statements that summarize the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business.

Prepare a balance sheet for the debt service fund for the year ended December 31, 2020:

Company SB
Debt service fund
Balance sheet
As on December 31, 2020
Particulars	Amount	Amount
Assets:
Cash		$528,000
Taxes receivable -delinquent		$1,000
Total assets		$529,000
Deferred inflows of resources:
Unavailable revenues		$1,000
Fund balances:
Fund balance- restricted for debt service		$528,000
Total deferred inflows of resources and fund balance		$529,000

Table (3)

Answer 19

c.

To determine

Prepare a balance sheet for the debt service fund for the year ended December 31, 2020.

Answer 20

c.

Expert Solution

Explanation of Solution

Balance sheet: Balance Sheet is one of the financial statements that summarize the assets, the liabilities, and the Shareholder’s equity of a company at a given date. It is also known as the statement of financial status of the business.

Prepare a balance sheet for the debt service fund for the year ended December 31, 2020:

Company SB
Debt service fund
Balance sheet
As on December 31, 2020
Particulars	Amount	Amount
Assets:
Cash		$528,000
Taxes receivable -delinquent		$1,000
Total assets		$529,000
Deferred inflows of resources:
Unavailable revenues		$1,000
Fund balances:
Fund balance- restricted for debt service		$528,000
Total deferred inflows of resources and fund balance		$529,000