At the start of 2022, Croton's Debt Service Fund had no assets or liabilities. Prepare journal entries to record these transactions in the Debt Service Fund and where appropriate, in the General Fund. 1. The General Fund transferred $1,200 cash to the Debt Service Fund. 2. The first installment of principal and interest on the bonds sold in Part C (1) Item 1 came due for payment. 3. The principal and interest due for payment were paid. 4. Debt service on bonds sold by Croton in previous years came due and was paid. Principal and interest pay- ments on those bonds were $600 and $470, respectively.

At the start of 2022, Croton's Debt Service Fund had no assets or liabilities. Prepare journal entries to record these transactions in the Debt Service Fund and where appropriate, in the General Fund. 1. The General Fund transferred $1,200 cash to the Debt Service Fund. 2. The first installment of principal and interest on the bonds sold in Part C (1) Item 1 came due for payment. 3. The principal and interest due for payment were paid. 4. Debt service on bonds sold by Croton in previous years came due and was paid. Principal and interest pay- ments on those bonds were $600 and $470, respectively.

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

22nd Edition

ISBN:9781305666160

Author:James A. Heintz, Robert W. Parry

Publisher:James A. Heintz, Robert W. Parry

Chapter22: Corporations: Bonds

Section: Chapter Questions

Problem 13SPA: BONDS ISSUED AT FACE VALUE WITH SINKING FUND Martin Manufacturing issued the following bonds:...

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1 Saved Help Save & Ex On January 1, 2021, Tennessee Harvester Corporation issued debenture bonds that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below: Cash Effective Increase in Outstanding Payment Payment Interest Balance Balance 6,544,432 6,555,654 6,567,437 6,579,809 6,592,799 6,606,439 6,620,761 1 316, 0ее 316,000 316,000 316,000 316, е0е 316,000 327,222 327,783 328,372 328,990 329,640 330,322 11,222 11,783 12,372 12,990 13,640 14,322 3. 4 6 38 316,000 316,000 316,000 384,243 387,655 391,243 68,243 71,655 75,243 7,753,102 7,824,757 7,900,000 39 40 Required: 1. What is the face amount of the bonds? 2. What is the initial selling price of the bonds? 3. What is the term to maturity in years? 4. Interest is determined by what approach? 5. What is the stated annual interest rate? 6. What is the effective annual interest rate? 7. What is the total cash interest paid over the term to maturity? 8. What is the total effective…
BONDS ISSUED AT FACE VALUE WITH SINKING FUND Creswell Entertainment issued the following bonds: REQUIRED Prepare journal entries for: (a) Issuance of the bonds. (b) Deposit to sinking fund on June 1. (c) Interest payment on the bonds on September 30, 20-1. (d) Earnings of 3,000 on the sinking fund in 20-1. (e) Year-end adjustment on the bonds for 20-1. (f) Reversing entry for the beginning of 20-2. (g) Interest payments on the bonds on March 31, 20-2. (h) Deposit to sinking fund on June 1, 20-2. (i) Redemption at maturity from the sinking fund. (j) Return of excess cash of 1,900 from the sinking fund to the corporation.
BONDS ISSUED AT FACE VALUE WITH SINKING FUND Martin Manufacturing issued the following bonds: REQUIRED Prepare journal entries for: (a) Issuance of the bonds. (b) Deposit to sinking fund on June 1. (c) Interest payment on the bonds on September 30, 20-1. (d) Earnings of 2,400 on the sinking fund in 20-1. (e) Year-end adjustment on the bonds for 20-1. (f) Reversing entry for the beginning of 20-2. (g) Interest payment on the bonds on March 31, 20-2. (h) Deposit to sinking fund on June 1, 20-2. (i) Redemption at maturity from the sinking fund. (j) Return of excess cash of 1,050 from the sinking fund to the corporation.
Question 1- prepare the journal entries for following information:- (1)- By June 30, 2024, property taxes had been collected in the amount of $475,000; $300,000 was invested in temporary investments that earn 2.6 percent per annum. Required: Prepare the journal entry to record the amount invested. (2)- Bond interest of $37,500 due July 1, 2024 on the deferred serial bonds issued in 2023 and $82,500 on the 2.75% serial bonds issued in 2024 was paid on July 1. Required: Prepare the journal entry to record the payment of interest. (3)- During the second half of 2024, property taxes were collected in the amount of $150,000. Required: Prepare the journal entry to record the receipt of current property taxes.
Record the appropriation of $77000 of retained earnings on December 31, 2022, by Jack Inc. to establish an appropriation for bond retirement. Record the entry to establish appropriation.
D4. As of december 31, 2019, Sandy Beach had $9,500,000 in 4.5 percent serial bonds outstanding. Cash of $509,000 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.
On June 28, 2019, Brock City’s debt service fund received funds for the future repayment of bond principal. As a consequence, the general long-term debt account group reporteda. an increase in the amount available in debt service funds and an increase in the fund balance.b. an increase in the amount available in debt service funds and an increase in the amount to be provided for bonds.c. an increase in the amount available in debt service funds and a decrease in the amount to be provided for bonds.d. no changes in any amount until the bond principal is actually paid.
Oct 1, 2023: Record the retirement of bond for $883,000. Record the retirement of bond for $887,879. Record the retirement of bond for $890,900.
12 Part 1 of 3 Required information [The following information applies to the questions displayed below.] As of December 31, 2022, 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, 2022, 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. Required a-1. Prepare debt service fund and government-wide entries in general journal form to reflect, as necessary, the following information and transactions for FY 2023. (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 / Governmental Activties General…
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
The first $2,000 deposit is made on December 31, 2020, interest is compounded annually, and interest earned is withdrawn at the end of each year. $ Deposit Amount 2,000 No. of Payments Interest left in Fund Balance Fund 12/31/2024
The pre-closing trial balance for the general fund of Lancaster Company at December 31, 2019 is given below. Credit Debit $362,000 113,000 1,290,000 60,000 Cash Taxes receivable Estimated revenues Estimated other financing sources Expenditure Transfers out Capital Outlay Debt service-principal Debt service-interest Allowance for uncollectible taxes Accounts payable Property tax revenues Other revenues Proceeds from bonds Transfers in Appropriations Estimated other financing uses Fund balance----unassigned Totals Multiple Choice O O о $380,000 What is the total fund balances-unassigned reported on 2019 balance sheet (after the closing entries)? $425,000 $475,000 1,015,000 20,000 25,000 2,000 8,000 $285,000 $2,895,000 $ 45,000 50,000 950,000 400,000 50,000 8,000 1,085,000 22,000 285,000 $2,895,000