The City of Amarillo is authorized to issue $6,600,000, 3 percent regular serial bonds in 2023 for the construction of a new exit off theanterstate highway within city limits. The bonds mature in equal annual amounts beginning on January 1, 2024, for 10 years and paynterest on January 1 and July 1. The city is required to use all accrued interest and premiums to service the debt. The funds to pay thenterest will be transferred from the General Fund. The county's fiscal year-end is December 31. Prepare the budgetary entries for 2023 assuming that the bonds were scheduled to be issued on January 2. Assume that theJanuary 1, 2024, principal and interest payments will be included in the 2023 budget. Prepare the entry required to reflect thetransfer of funds from the General Fund to the debt service fund. (You may ignore the entry in the General Fund) (If no entry isrequired for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediatecalculations.)TransactionFund1. Record the budget transaction1Debt Service Fund2. Record the transfer of funds2Debt Service FundGeneral JournalEstimated Other Financing Sources-Transfers InAppropriationsCashOther Financing Sources-Interfund Transfers InDebit759,000Credit759.000

A journal entry is a basic accounting record that is used to chronologically track financial…

y of Amarillo is authorized to issue $6,600,000, 3 percent reg te highway within city limits. The bonds mature in equal annu on January 1 and July 1. The city is required to use all accrue will be transferred from the General Fund. The county's fisca

y of Amarillo is authorized to issue $6,600,000, 3 percent reg te highway within city limits. The bonds mature in equal annu on January 1 and July 1. The city is required to use all accrue will be transferred from the General Fund. The county's fisca

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The City of Amarillo is authorized to issue $9,000,000, 5 percent regular serial bonds in 2023 for the construction of a new exit off the interstate highway within city limits. The bonds mature in equal annual amounts beginning on January 1, 2024, for 10 years and pay interest on January 1 and July 1. The city is required to use all accrued interest and premiums to service the debt. The funds to pay the interest will be transferred from the General Fund. The county’s fiscal year-end is December 31.Prepare the budgetary entries for 2023 assuming that the bonds were scheduled to be issued on January 2. Assume that the January 1, 2024, principal and interest payments will be included in the 2023 budget. Prepare the entry required to reflect the transfer of funds from the General Fund to the debt service fund. (You may ignore the entry in the General Fund.)
The City of Amarillo is authorized to issue $9,000,000, 5 percent regular serial bonds in 2023 for the construction of a new exit off the interstate highway within city limits. The bonds mature in equal annual amounts beginning on January 1, 2024, for 10 years and pay interest on January 1 and July 1. The city is required to use all accrued interest and premiums to service the debt. The funds to pay the interest will be transferred from the General Fund. The county's fiscal year-end is December 31. Prepare the budgetary entries for 2023 assuming that the bonds were scheduled to be issued on January 2. Assume that the January 1, 2024, principal and interest payments will be included in the 2023 budget. Prepare the entry required to reflect the transfer of funds from the General Fund to the debt service fund. (You may ignore the entry in the General Fund.) Transaction Fund 1. Record the budget transaction. 1 Debt Service Fund 2. Record the transfer of funds. 2 Debt Service Fund Answer is…
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