Question

The Village of Hawksbill issued $5,000,000 in 5 percent general obligation, tax-supported bonds on July 1, 2019, at 102. A fiscal agent is not used Resources for principal and Interest payments are to come from the General Fund Interest payment dates are December 31 and June 30. The first of 20 annual principal payments is to be made June 30, 2020. Hawksbill has a calendar fiscal year LA capital projects fund transferred the premium (in the amount of $100,000) to the debt service fund. 2 On December 31, 2019, funds in the amount of $125,000 were received from the General Fund and the first interest payment was made. 3. The books were closed for 2019 4. On June 30, 2020, funds in the amount of $275,000 were received from the General Fund, and the second Interest payment ($125,000) was made along with the first principal payment ($250,000). 5. On December 31, 2020. funds in the amount of $118.750 were received from the General Fund and the third Interest payment was made (also in the amount of $118,750). 6. The books were closed for 2020 Required: 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, 2019 c. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the debt service fund for the year ended December 31, 2020 Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare journal entries to record the events above in the debt service fund. (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) View transaction list

Answer 1

Part A

No.	General Journal	Debit	Credit
1	No Entry
	(to record the sale of bonds in capital projects fund)
2	Cash	100000
	Other Financing Sources-Transfers In		100000
	(to record transfer of premium of the debt service fund)
3	Cash	125000
	Other Financing Sources-Transfers In		125000
	(to record the receipt from the general fund of interest)
4	Expenditures-Interest	125000
	Cash		125000
	(to record the interest expenditure incurred)
5	Other Financing Sources-Transfers In	225000
	Expenditures-Interest		125000
	Fund Balance-Reserved For Debt Service		100000
	(to record transfer-in and expenditure to the fund balance account)
6	Cash	275000
	Other Financing Sources-Transfers In		275000
	(record the receipt from the general fund)
7	Expenditures - Interest	125000
	Expenditures - Principal	250000
	Cash		375000
	(to record the payment of principal and interest)
8	Cash
	Other Financing Sources-Transfers In	118750
	(to record the receipt from the general fund for interest)		118750
9	Expenditures-Interest	118750
	Cash		118750
	(to record the interest expenditure incurred)
10	Other Financing Sources-Transfers In	393750
	Fund Balance-Reserved For Debt Service	100000
	Expenditures – Interest (125000+118750)		243750
	Expenditures - Principal		250000
	(to record the transfer-in and expenditure to the fund balance account)

Part B

Village Of Hawksbill Debt Service Fund statement of Revenues, Expenditures, and Changes in Fund Balance Year Ended December 31, 2019
Revenues:
Total Revenues	0
Debt Service Expenditures:
Interest	125000
Principal	0
	125000
Excess(Deficiency) Of Revenues Over Expenditures	(125000)
Other Financing Sources:
Transfers In:	225000
Total Change In Fund Balance	100000
Fund Balance-January1, 2019	0
Fundbalance-December31, 2019	100000

Part C

Village Of Hawksbill Debt Service Fund statement of Revenues, Expenditures, and Changes in Fund Balance Year Ended December 31, 2020
Revenues:
Total Revenues	0
Debt Service Expenditures:
Interest (118750+125000)	243750
Principal	250000
	493750
Excess(Deficiency) Of Revenues Over Expenditures	(493750)
Other Financing Sources:
Transfers In:	393750
Total Change In Fund Balance	(100000)
Fund Balance-January1, 2019	100000
Fundbalance-December31, 2019	0