Question

ACCOUNTING FOR GOVERNMENTAL AND NONPRO HANDE HANDOUT PROBLEM 6 Score- Name Section Problem (10 points). The following is a trial balance for the City of Hulett for its debt service fund CITY OF HULETT DEBT SERVICE FUND TRIAL BALANCE AT DECEMBER 31, 20x3 Debits Credits 60,000 Cash Investments Fund Balance-Restricted For Debt Repayment 30,000 90,000 Totals 90,000 90,000 The attached transactions occurred during the year that affected the debt service fund. Prepare journal entries, in proper general journa transactions for the Debt Service Fund, for the fiscal year ending December REQUIRED: (1) I form, to record the attached 31,20X4. Omit explanations. Use the letter of the transaction as the date. preclosing trial balance for the Debt Service Fund at December 31, (2) Prepare a 20x4

Answer 1

Journal Entries of City of Hulett Interest payable to Bond Holders(Agent A/C) D Revenue Receivable 1000000 To cash 50000 Other Financing Source receivable To Appropriations To Fund balance 1298000 Bond Holders 45000 Fees for Agents service Dr 1000 b) To Interest payable to Bond Holders (Agent A/C) Other Financing Source receivable To general fund Dr Cr Interest payable to Bond Holders (Agent A/C) Dr Principle payable to Bond Holders (Agent A/C) Dr Property taxes receivable Bad debt Expenses 975000 100000 To cash To Property tax receivable To Allowance for Doubtful Accounts Cr 975000 Bond Holders Interest Bond Holders Principle Fees for Agents service Cr 51000 Cash Account Dr To Property taxes receivable Cr To Interest payable to Bond Holders (Agent A/C) Cr Cash Dr Bad Debts expenses To Property Taxes To Other Financing Source receivable Cr Investments To Cash Cash Account 5000 To income from investment Cr