question archive Q2) California town issued a $ 20,000, 5 years, 8% term bonds at the beginning of this year to finance the construction or Road
Q2) California town issued a $ 20,000, 5 years, 8% term bonds at the beginning of this year to finance the construction or Road
Subject:AccountingPrice: Bought3
Q2) California town issued a $ 20,000, 5 years, 8% term bonds at the beginning of this year to finance the construction or Road. The repayment scheme of these bonds shows that $ 4000 be transferred per year to Debt service fund from General Fund to be be accumulated for the payment of the bonds at the end of the 5th year. As a result, the annual operating transfer was made to debt service fund at the end of the current year, Current Expenditures by Capital project fund amounted to $ 5,000 paid in cash.
Prepare the necessary entries for the current year in:
A. General Fund
B. Debt Service Fund
C. Capital Project Fund
