Purchase Solution

Governmental Accounting: White City's Journal Entries

Not what you're looking for?

Ask Custom Question

With the approval of neighborhood property owners, the White City Council voted to construct sidewalks in a newly
annexed neighborhood, assess the property owners for the cost, and issue debt to finance the project.

For the 2008 transactions that follow, prepare journal entries in White City's capital projects and debt service

a. On January 1, 2008, the city council assessed the property owners the estimated cost of $8,000,000.
The assessments are payable over a five-year period ($1,600,000 per year) with interest at 6 percent annually (3 percent per semiannual period) on the unpaid balance. The first installment is due on December 31, 2008.
b. The city issued $8,000,000 of five-year, 6 percent, serial bonds. The bonds were issued at a premium
of $200,000, but the city incurred issuance costs of $150,000. It transferred the premium (net of the issuance costs) to the debt service fund.
c. It constructed the sidewalks at the estimated cost of $8,000,000.
d. It collected the first $1,600,000 installment of the assessments, along with $480,000 in interest.
e. It made one payment of $240,000 interest on the bonds. The next payment of interest, along with the first payment of $1,600,000 in principal, is due in January 2009.

Purchase this Solution

Solution Summary

This solution provides journal entries in White City's capital projects and debt service funds.

Solution Preview

Transaction 1A
DR: Taxes receivable - current 1,600,000
DR: Taxes receivable - non-current 6,400,000
CR: Revenues - property taxes 8,000,000

Transaction 1B
Capital Projects Fund
DR: Cash 8,000,000
CR: ...

Purchase this Solution

Free BrainMass Quizzes

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.