Transactions:
1. The government issued $2,500 of 8-month, 9% bond anticipation notes. The notes meet the requirements to be accounted for as long-term debt. The proceeds are to be used to begin construction of a recently approved addition to the county jail.
2. The government issued $5,000 of 10-year, 8% bonds at par. Bond issue costs of $50 were withheld from the proceeds. Interest and one-tenth of the principal are payable annually on the bonds. The bond proceeds are to be used to repay the bond anticipation notes and to finance construction of the jail addition. (See entries #1 and #3)
3. The BANs and interest were paid on their due date. (See entries #1 and #2)
4. The semiannual payment of interest on bonds issued several years ago by a Capital Projects Fund came due and was paid. The outstanding principal of these 20-year, 4%, term bonds is $3,000. The unamortized discount on these bonds is $100. The bonds were issued 15 years ago on this date. The payment includes fiscal agent fees of $10.
5. The annual payment of serial bonds issued 10 years ago by the government came due. The amount owed is $1,250 in principal, $20 interest, and $5 in fiscal agent fees. The amount due was paid.
6. Another term bond issued 20 years ago by the government came due and was paid. The face amount and rate was $3,200 and 3%, respectively, and pays interest semiannually. The fiscal agent fees were $60.
7. A serial bond issued in the current year has its first annual payment of principal and interest due on the third day of the next fiscal year. As is required by the debt covenant and following the general procedures for all debt issues of the county, $1,200 ($1,000 for principal, $180 for interest, and $20 for fiscal agent fees) has been transferred from the General Fund to the Debt Service Fund to make this payment.
Requirement: Prepare the general journal entries using standard fund-type terminology, identifying the fund or nonfund accounts for which the entry is being prepared. Appropriate abbreviations are acceptable (e.g., GF, SRF, CPF, DSF, GCA, GLTL, OFS, OFU). If no entry is required, write “No Entry Required” and briefly explain why. Do not include formal entry explanations or dates, but include any important assumptions made and all calculations.
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