9/4/22, 7:56 PM Assignment Print View

 
1. Award: 33.33 out of 33.33 points  

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.)

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9/4/22, 7:56 PM Assignment Print View

Transaction Fund / Governmental Activties General Journal Debit Credit

1. The operating budget for FY 2023 consists of estimated revenues of $1,020,000 and estimated other financing sources equal to the amount of interest
to be paid in FY 2023. Appropriations must be provided for interest payments and bond redemptions on January 1 and July 1.
1 Serial Bond Debt Service Fund Estimated Other Financing Sources  277,500 

Estimated Revenues  1,020,000 

Appropriations  1,277,500 

Budgetary Fund Balance  20,000 

Governmental Activities No Journal Entry Required 

2. Cash was received from the General Fund and checks were written and mailed for the January 1 principal and interest payments.
2a Serial Bond Debt Service Fund Record cash received from the general fund.
Cash  142,500 

Other Financing Sources—Interfund Transfers In  142,500 

2b Record principal and interest paid.

Expenditures—Bond Interest  142,500 

Expenditures—Bond Principal  500,000 

Cash  642,500 

2c Governmental Activities Interest Payable  142,500 

Bonds Payable  500,000 

Cash  642,500 

3. Property taxes in the amount of $1,020,000 were levied (no estimate for uncollectible accounts has been made).
3 Serial Bond Debt Service Fund Taxes Receivable—Current  1,020,000 

Revenues  1,020,000 

Governmental Activities Taxes Receivable—Current  1,020,000 

General Revenues—Property Taxes  1,020,000 

4. Property taxes in the amount of $1,019,000 were collected.

4 Serial Bond Debt Service Fund Cash  1,019,000 

Taxes Receivable—Current  1,019,000 

Governmental Activities Cash  1,019,000 

Taxes Receivable—Current  1,019,000 

5. Cash was received from the General Fund and checks were written and mailed for the July 1 principal and interest payments.
5a Serial Bond Debt Service Fund Record cash received from the general fund.
Cash  135,000 

Other Financing Sources—Interfund Transfers In  135,000 

5b Record principal and interest paid.

Expenditures—Bond Interest  135,000 

Expenditures—Bond Principal  500,000 

Cash  635,000 

5c Governmental Activities Expenses—Interest on Long-term debt  135,000 

Bonds Payable  500,000 

Cash  635,000 

 
a-2. Prepare the closing entries. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not
round intermediate calculations.)

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9/4/22, 7:56 PM Assignment Print View

Transaction Fund / Governmental Activties General Journal Debit Credit

6. Adjusting entries were made and uncollected taxes receivable were reclassified as delinquent. At the fund level, entries were also made to close
budgetary and operating statement accounts. (Ignore closing entries in the government activities journal.)
6a Serial Bond Debt Service Fund Record the entry to close the budgetary statement account.
Budgetary Fund Balance  20,000 

Appropriations  1,277,500 

Estimated Other Financing Sources  277,500 

Estimated Revenues  1,020,000 

6b Record the entry for classifying uncollectible accounts.

Taxes Receivable—Delinquent  1,000 

Taxes Receivable—Current  1,000 

6c Record the deferred inflows of resources.

Revenues  1,000 

Deferred Inflow of Resources—Unavailable revenues  1,000 

6d Record the entry to close the operating statement account.

Other Financing Sources—Interfund Transfers In  277,500 

Revenues  1,019,000 

Expenditures—Bond Interest  277,500 

Expenditures—Bond Principal  1,000,000 

Fund Balance—Restricted  19,000 

6e Governmental Activities Expenses—Interest on Long-term debt  127,500 

Interest Payable  127,500 

6f Record the entry for classifying uncollectible accounts.

Taxes Receivable—Delinquent  1,000 

Taxes Receivable—Current  1,000 

References

Journal Entries Learning Objective: 06-02 Prepare

note disclosures for general long-
term debt, including schedules of
statutory debt limits, debt margin,
and overlapping debt.

Difficulty: 3 Hard Learning Objective: 06-05 Make

journal entries to account for
general long-term liabilities in debt
service funds and in the
governmental activities general
journal.

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.)

https://ezto.mheducation.com/api/caa/activity/C15Print?jwt=eyJhbGciOiJSUzI1NiJ9.eyJlbnZpcm9ubWVudCI6InByb2QiLCJpc3MiOiJlenQiLCJwcmludFVSTCI6Im… 4/6
9/4/22, 7:56 PM Assignment Print View

Transaction Fund / Governmental Activties General Journal Debit Credit

1. The operating budget for FY 2023 consists of estimated revenues of $1,020,000 and estimated other financing sources equal to the amount of interest
to be paid in FY 2023. Appropriations must be provided for interest payments and bond redemptions on January 1 and July 1.
1 Serial Bond Debt Service Fund Estimated Other Financing Sources   277,500
Estimated Revenues   1,020,000
Appropriations   1,277,500
Budgetary Fund Balance   20,000

Governmental Activities No Journal Entry Required  

 

2. Cash was received from the General Fund and checks were written and mailed for the January 1 principal and interest payments.
2a Serial Bond Debt Service Fund Record cash received from the general fund.
Cash   142,500
Other Financing Sources—Interfund Transfers In   142,500

2b Record principal and interest paid.

Expenditures—Bond Interest   142,500
Expenditures—Bond Principal   500,000
Cash   642,500

2c Governmental Activities Interest Payable   142,500

Bonds Payable   500,000
Cash   642,500

3. Property taxes in the amount of $1,020,000 were levied (no estimate for uncollectible accounts has been made).
3 Serial Bond Debt Service Fund Taxes Receivable—Current   1,020,000
Revenues   1,020,000

Governmental Activities Taxes Receivable—Current   1,020,000

General Revenues—Property Taxes   1,020,000

4. Property taxes in the amount of $1,019,000 were collected.

4 Serial Bond Debt Service Fund Cash   1,019,000
Taxes Receivable—Current   1,019,000

Governmental Activities Cash   1,019,000

Taxes Receivable—Current   1,019,000

5. Cash was received from the General Fund and checks were written and mailed for the July 1 principal and interest payments.
5a Serial Bond Debt Service Fund Record cash received from the general fund.
Cash   135,000
Other Financing Sources—Interfund Transfers In   135,000

5b Record principal and interest paid.

Expenditures—Bond Interest   135,000
Expenditures—Bond Principal   500,000
Cash   635,000

5c Governmental Activities Expenses—Interest on Long-term debt   135,000

Bonds Payable   500,000
Cash   635,000

 
a-2. Prepare the closing entries. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not
round intermediate calculations.)

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9/4/22, 7:56 PM Assignment Print View

Transaction Fund / Governmental Activties General Journal Debit Credit

6. Adjusting entries were made and uncollected taxes receivable were reclassified as delinquent. At the fund level, entries were also made to close
budgetary and operating statement accounts. (Ignore closing entries in the government activities journal.)
6a Serial Bond Debt Service Fund Record the entry to close the budgetary statement account.
Budgetary Fund Balance   20,000
Appropriations   1,277,500
Estimated Other Financing Sources   277,500
Estimated Revenues   1,020,000

6b Record the entry for classifying uncollectible accounts.

Taxes Receivable—Delinquent   1,000
Taxes Receivable—Current   1,000

6c Record the deferred inflows of resources.

Revenues   1,000
Deferred Inflow of Resources—Unavailable revenues   1,000

6d Record the entry to close the operating statement account.

Other Financing Sources—Interfund Transfers In   277,500
Revenues   1,019,000
Expenditures—Bond Interest   277,500
Expenditures—Bond Principal   1,000,000
Fund Balance—Restricted   19,000

6e Governmental Activities Expenses—Interest on Long-term debt   127,500

Interest Payable   127,500

6f Record the entry for classifying uncollectible accounts.

Taxes Receivable—Delinquent   1,000
Taxes Receivable—Current   1,000

 
Explanation:

1.
Serial Bond Debt Service Fund
Budget for FY 2023: Interfund transfers in for interest = $9,500,000 × 0.03 × ½ for January 1 payment and $9,000,000 × 0.03 × ½ for July 1 payment = $277,500.

6e.
Governmental Activities
$8,500,000 × 0.03 × ½ = $127,500

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