Evaluate Budgetary Accounting
Project description
Prepare a paper in which you respond to the following:
Compose all journal entries, including the budget entry and closing entry, required in the Term Bond Debt Service Fund for the fiscal year ending June 30, 2006. Investment revenue during the year was $11,800, all of which added to the investment balance.
On July 1, the first day of their fiscal year, the City of Marshall sold bonds with a face value of $10,000,000 at 102% of par. The bonds bear annual interest at 6%; interest is payable semiannually. The bonds will mature in equal installments over 20 years. (Bond premium must be used for eventual bond redemption and is deposited directly into the debt service fund.)
Assuming the bonds are tax-supported bonds sold to finance construction of a sports complex, the operations of which will be financed by a special revenue fund when the complex is completed:
Name the type of fund and/or week in which each of the following should be recorded. (If any of the following should not be recorded at all, enter “none” on the appropriate line.)
The cash received for the sale of the bonds?
The liability of $10,000,000 for Bonds Payable?
The cost of the sports complex?
Bond interest paid or accrued during the period of construction?
Amortization of premium on bonds sold?
Show in general journal form all entries that should be made to record the sale of the bond. For each entry, indicate the fund or group in which the entry is made.
For items reported in the Restricted Assets section of an enterprise fund balance sheet, how are the related items reported in the liability and fund equity sections of the balance sheet?
Support your paper with a minimum of five (5) scholarly resources. In addition to these specified resources, other appropriate scholarly resources, including older articles, may be included.
Length: 4 pages not including title and reference pages
Your paper should demonstrate thoughtful consideration of the ideas and concepts that are presented in the course and provide new thoughts and insights relating directly to this topic. Your response should reflect scholarly writing and current APA standards.
