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rsowmya675

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SowmyaKaloji Narayana Rao University of Health Sciences

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### (a) Prepare the general journal entry to record the issuance of the bonds ...
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Please do this question for me, thankyou!

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On July 1, 2016, the first day of its 2017 fiscal year, the Cityof Nevin issued at par $7,200,000 of 4 percent term bonds toconstruct a new city office building. The bonds mature in fiveyears on July 1, 2021. Interest is payable semiannually on January1 and July 1. A sinking fund is to be established with equalsemiannual additions made on June 30 and December 31, with thefirst addition to be made on December 31, 2016. Cash for thesinking fund additions and the semiannual interest payments will betransferred from the General Fund shortly before the due dates.City officials assume a yield on sinking fund investments of 4percent per annum, compounded semiannually. Investment earnings areadded to the investment principal.

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### Schedule of Required Additions, Expected Earnings, and Ending Balance in t...

On July 1, 2016, the first day of its 2017 fiscal year, the City of Nevin issued at par $4,200,000 of 8 percent term bonds to construct a new city office building. The bonds mature in five years on July 1, 2021. Interest is payable semiannually on January 1 and July 1. A sinking fund is to be established with equal semiannual additions made on June 30 and December 31, with the first addition to be made on December 31, 2016. Cash for the sinking fund additions and the semiannual interest payments will be transferred from the General Fund shortly before the due dates. City officials assume a yield on sinking fund investments of 8 percent per annum, compounded semiannually. Investment earnings are added to the investment principal.

Required

a.

Prepare a schedule in good form showing the required additions to the sinking fund, the expected semiannual earnings, and the end-of-period balance in the sinking fund for each of the 10 semiannual periods. (Note: The future amount of an ordinary annuity of $1 for 10 periods at 4 percent per period is 12.00610712.) (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)

Fiscal Year Period Required Addition Expected Earnings Ending Balance
2017 1 $0
2 0
2018 3 0
4 0
2019 5 0
6 0
2020 7 0
8 0
2021 9 0
10 0

Prepare journal entries in the debt service fund for the following: (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.)

Transaction Fund General Journal Debit Credit
1. Record a budget for the fiscal year ended June 30, 2017. Include an accrual for all interfund transfers to be received from the General Fund during the year. An appropriation should be provided only for the interest payment due on January 1, 2017.
1 Term Bond Debt Service Fund
2. On December 28, 2016, the General Fund transferred $517,822 to the debt service fund. The addition to the sinking fund was immediately invested in 8 percent certificates of deposit.
2a Term Bond Debt Service Fund Record the transfer from the general fund to the debt service fund.
2b Record the investment in the certificates of deposit.
3. On December 28, 2016, the city issued checks to bondholders for the interest payment due on January 1, 2017.
3 Term Bond Debt Service Fund
4. On June 27, 2017, the General Fund transferred $517,822 to the debt service fund. The addition for the sinking fund was invested immediately in 8 percent certificates of deposit.
4a Term Bond Debt Service Fund Record the transfer from the general fund to the debt service fund.
4b Record the investment in the certificates of deposit.
5. Actual interest earned on sinking fund investments at year-end (June 30, 2017) was the same as the amount budgeted. This interest adds to the sinking fund balance.
5 Term Bond Debt Service Fund

Prepare the closing entries.

Transaction Fund General Journal Debit Credit
6. All appropriate closing entries were made at June 30, 2017, for the debt service fund.
6a Term Bond Debt Service Fund Record the entry to close the budgetary statement account.
6b Record the entry to close the operating statement account.
### Schedule of Required Additions, Expected Earnings, and Ending Balance in t...

On July 1, 2016, the first day of its 2017 fiscal year, the City of Nevin issued at par $2,000,000 of 6 percent term bonds to construct a new city office building. The bonds mature in five years on July 1, 2021. Interest is payable semiannually on January 1 and July 1. A sinking fund is to be established with equal semiannual additions made on June 30 and December 31, with the first addition to be made on December 31, 2016. Cash for the sinking fund additions and the semiannual interest payments will be transferred from the General Fund shortly before the due dates. City officials assume a yield on sinking fund investments of 6 percent per annum, compounded semiannually. Investment earnings are added to the investment principal.

1)Prepare a schedule in good form showing the required additions to the sinking fund, the expected semiannual earnings, and the end-of-period balance in the sinking fund for each of the 10 semiannual periods. (Note: The future amount of an ordinary annuity of $1 for 10 periods at 3 percent per period is 11.4638793.)

2) Prepare journal entries in the debt service fund for the following:

1 - Record a budget for the Fiscal year ended June 30, 2017. Include an accrual for all interfund transfers to be received fromt he General Fund during the year. An appropriation should be provided only for the interst payment due on January 1, 2017.

2 - On December 28, 2016, The general Fund transferred $234,461 to the debt service fund. The addition to the sinking fund was immediately invested in 6 percent certificates of deposit.

3- On December 28, 2016 the city issued checks to bondholders for the interst payment due on January 1, 2017

4 -On June 27, 2017, the General Fund transferred $234,461 to the debt service fund. The addition for the sinking fund was invested immediately in 6 percent certificates of deposit.

5 - Actual interst earned on sinking fund investments at year end (june 30, 2017) was the same as the amount budgeted. This interst adds to the sinking fund balance.

2 Prepare the closing entries. -

All appropriate closing entreis were made at June 30, 2017, for the debt service fund.

6a) Term Bond Debt Service Fund - Record the entry to close the budgetary statement account

6b) """"" - Record the entry close the operating statement account.

On July 1, 2016, the first day of its 2017 fiscal year, the City of Nevin issu...
### Closing Entries for the Debt Service Fund:#### 6a) Close the budgetary sta...

THIS IS THE SAME QUESTION AS PREVIOUSLY BUT NO IS RESPONDING ALL REQUIREMENTS....ONLY PARTIALLY.

On July 1, 2016, the first day of its 2017 fiscal ... Bookmark On July 1, 2016, the first day of its 2017 fiscal year, the City of Nevin issued at par $2,000,000 of 6 percent term bonds to construct a new city office building. The bonds mature in five years on July 1, 2021. Interest is payable semiannually on January 1 and July 1. A sinking fund is to be established with equal semiannual additions made on June 30 and December 31, with the first addition to be made on December 31, 2016. Cash for the sinking fund additions and the semiannual interest payments will be transferred from the General Fund shortly before the due dates. City officials assume a yield on sinking fund investments of 6 percent per annum, compounded semiannually. Investment earnings are added to the investment principal.

2) Prepare journal entries in the debt service fund for the following:

1 - Record a budget for the Fiscal year ended June 30, 2017. Include an accrual for all interfund transfers to be received fromt he General Fund during the year. An appropriation should be provided only for the interst payment due on January 1, 2017.

2 - On December 28, 2016, The general Fund transferred $234,461 to the debt service fund. The addition to the sinking fund was immediately invested in 6 percent certificates of deposit. 3- On December 28, 2016 the city issued checks to bondholders for the interst payment due on January 1, 2017

4 -On June 27, 2017, the General Fund transferred $234,461 to the debt service fund. The addition for the sinking fund was invested immediately in 6 percent certificates of deposit.

5 - Actual interst earned on sinking fund investments at year end (june 30, 2017) was the same as the amount budgeted. This interst adds to the sinking fund balance. 2 Prepare the closing entries. -

All appropriate closing entreis were made at June 30, 2017, for the debt service fund.

6a) Term Bond Debt Service Fund - Record the entry to close the budgetary statement account

6b) """"" - Record the entry close the operating statement account.

Let's go step by step to address each requirement:### 1) Journal Entries for t...

On July 1, 20X3, the City of Chelan issued $2,000,000 of6percent tern bonds maturing in five years on July 1, 20X8.Interest on the bonds is payable semiannually on January 1 , andJuly 1 , with the first interest payment falling due on January1,20X4.

A sinking fund is to be established, with equal additions to bemade on the interest dates each year beginning on January 1,20X4 .Sinking fund investments are expected to yield a return of 6percent per year, compounded semiannually. Investment earnings areadded to the sinking fund principal.

The attached transactions occurred during the year that affectedthe city’s debt service fund for fiscal year 20X8

REQUIRED: (1) calculate the amount of the annualaddition that will be necessary beginning on January 1 20X4 toadequately fund the sinking fund to retire the term bonds. Roundyour answer to nearest whole dollar.

(2) Prepare a schedule, in good form, showing therequired additions to the sinking fund for each of ten periods.

(3) Prepare entries in general journal form to reflectthe above transactions or information for the fiscal year endedJune 30, 20X8 only. Disregard any entries that should be made inthe General Fund. Make only entries required for the Debt ServiceFund. Use the letter of the transaction as the entry date Omitexplanations.

(1) On July 1, 20X7, the budget for fiscal year 20X8 was enactedapproving operating transfers from the General Fund necessary forthe Debt Service Fund appropriations for the interest payments dueon July 1 20X7, and January 1 20X8, the sinking fund additions dueon January 1 and July 1 ,20X8, and the estimated earnings that willbe received on the sinking fund for the fiscal year.

(2) On July 1,20X7, operating transfers were made from theGeneral Fund to the Term Bond Debt Service Fund to pay the interestdue and the sinking fund addition required on July 1, 20X7.

(3) The semiannual interest payment due on July 1, 20X7 wasmade. The interest had not been previously accrued. In addition,the appropriate amount was transferred to the sinking fund. Theamount was immediately invested in approved investments for thefund.

(4) The earnings on the sinking fund investments for the sixmonths ending July 1 ,20X7 were received. The amount had previouslybeen accrued as interest receivable. The amount was immediatelyreinvested.

(5) On January 1, 20X8, another transfer was made from theGeneral Fund for the January 1, 20X8 interest payment and additionto the sinking fund.

(6) The interest payment due on January 1, 20X8, was made onschedule. The sinking fund transfer was invested.

(7) The earnings on the sinking fund investments for the sixmonths ending January 1 ,20X8 were received. The amount wasimmediately reinvested.

(8) The earnings on the sinking fund investments for the sixmonths ending July 1,20X8 were accrued

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# ASSUME COMPOUND INTEREST EXCEPT WHERE NOTED

AT A 8% ANNUAL INTEREST RATE, $1000 NOW IS EQUIVALENT TO HOW

MUCH MONEY TEN YEARS FROM NOW?

IF $100 IS DEPOSITED AT THE END OF EACH MONTH IN A SAVINGSACCOUNT THAT PAYS 1% INTEREST PER MONTH STARTING ONE MONTH FROMNOW, HOW MUCH MONEY WILL BE IN THE ACCOUNT AT THE END OF SEVENYEARS?

TO RAISE MONEY FOR A NEW HOME, YOUR DAUGHTER ASKS YOU TO LENDHER “SOME” MONEY. SHE OFFERS TO PAY YOU $50,000 AT THE END OF FOURYEARS. HOW MUCH SHOULD YOU LOAN HER NOW IF YOU WANT TO RECEIVE 5%INTEREST PER YEAR? NOTE: THE ANSWER IS NOT $ 0.

A FUND ESTABLISHED TO PRODUCE A DESIRED AMOUNT OF MONEY AT THEEND OF A GIVEN TIME PERIOD, BY MEANS OF SERIES OF PAYMENTSTHROUGHOUT THE PERIOD IS CALLED A SINKING FUND. ASINKING FUND IS TO BE ESTABLISHED TO ACCUMULATE MONEY TO REPLACE A$12,000 MACHINE. IF THE MACHINE IS TO BE REPLACED AT THE END OF 10YEARS, HOW MUCH MONEY SHOULD BE DEPOSITED IN THE SINKING FUND EACHYEAR,STARTING IN YEAR 1? USE AN INTEREST RATE OF 8%.

AN INDIVIDUAL IS CONSIDERING THE PURCHASE OF AN USEDAUTO-MOBILE. THE TOTAL PURCHASE PRICE IS $6200. WITH A $1240 DOWNPAYMENT AND THE BALANCE PAID IN 48 EQUAL MONTHLY PAYMENTS AT ANINTEREST RATE OF 1% PER MONTH, COMPUTE THE MONTHLY PAYMENT. THEPAYMENTS START IN THE FIRST MONTH AND ARE DUE AT THE END OF EACHSUCCESSIVE MONTH.

A RETIREMENT FUND EARNS 1.5% INTEREST COMPOUNDED QUARTERLY. IF $400 IS DEPOSITED EVERY 3 MONTHS FOR 25 YEARS, THE AMOUNT IN THEFUND AT THE END OF 25 YEARS IS NEAREST TO:

$50,000 c. $ 100,000

$75,000 d. $ 125,000

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