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5-7 The Village of Harries issued $5,000,000 in 6%...

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5-7 The Village of Harries issued $5,000,000 in 6% general oblligation, tax supported bonds on July 1st, 2008, at 101. A fiscal agent is not used. Resources for principal and interest payments are to come from the geral fund. Interest payments dates are Decemeber 31 and June 30. The first of 20 annual principal payments is to be made June 30, 2009. Harris has a calendar fiscal year. 1. A capital projects fund transferrred the premium ($50,000) to the debt service fund. 2. On December 31, 2008, funds in the amount of $150,000 were received from the General Fund and the first interest payment was made 3. The books were closed for 2008. 4. On June 30, 2009, funds in the amount of $350,000 were received from the General Fund, and the second interest payment was made along with the first principal payment ($250,000). 5. On December 31, 2009, funds in the amount of $142,500 were received from the General Fund and the first interest payment was made. 6. The books were closed for 2009. a) Prepare journal entries to record the events above in the debt service fund. b) Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the debt service fund for the year ended December 31, 2008 c) Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the debt service fund for the year ended December 31, 2009.

 

Paper#9707 | Written in 18-Jul-2015

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