5 7. The Village of Harris issued $5,000,000 in 6 percent general obligation, taxsupported bonds on July 1, 2011, at 101. A fiscal agent is not used. Resources for principal and interest payments ar

5–7. The Village of Harris issued $5,000,000 in 6 percent general obligation, taxsupported

bonds on July 1, 2011, at 101. A fiscal agent is not used. Resources

for principal and interest payments are to come from the General Fund. Interest

payment dates are December 31 and June 30. The first of 20 annual principal

payments is to be made June 30, 2012. Harris has a calendar fiscal year.

1. A capital projects fund transferred the premium ($50,000) to the debt service

fund.

2. On December 31, 2011, funds in the amount of $150,000 were received

from the General Fund and the first interest payment was made.

3. The books were closed for 2011.

4. On June 30, 2012, funds in the amount of $350,000 were received from

the General Fund, and the second interest payment ($150,000) was made

along with the first principal payment ($250,000).

5. On December 31, 2012, funds in the amount of $142,500 were received from

the General Fund and the third interest payment was made ($142,500).

6. The books were closed for 2012.

b. Prepare a Statement of Revenues, Expenditures, and Changes in Fund

Balance for the debt service fund for the year ended December 31,

2011.

c. Prepare a Statement of Revenues, Expenditures, and Changes in Fund

Balance for the debt service fund for the year ended December 31,

2012.

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