Reference no: EM132779017

Problem 1: Prepare the journal entries required for the -Capital Projects Fund-Debt Service Fund-GCA-GLTL Accounts.

Andros Township entered into the following transactions during 20X6:

A. The township authorized a bond issue of $7,500,000 par to finance construction of a fountain in the town square. The bonds were issued for $7,680,000. Bond issue costs of $45,000 were incurred and paid. The premium, less bond issue costs, was transferred to the fund from which the debt is to be serviced.

B. The township entered into a contract for construction of the fountain at an estimated cost of $7,275,000.

C. The town received and paid a $7,335,000 bill for the construction upon completion of and the approval of the fountain.

D. The unused bond proceeds were set aside for debt service on the bonds. Accordingly, those resources were paid to the appropriate fund.