Question

PART ll SHORT PROBLEMS AND CASES (60 POINTS 1. Jefferson Parish Government issued $100 million bonds which mature in 20 years in August 1, 2011. The upon rate of the bond is 6 percent. Interest is paid semi annually on January 31 and 31. The bonds were sold for $89.3 million, aprice which reflects a7 percent (semiannual July yield of 3.5%) market rate. Jefferson Parish financial year ends January 31. The proceeds of the bonds are to be used for the construction of a baseball stadium. Required Provide the Journal entries to record the proceeds of the Bond in General Fund Account as a. of August 1, 2011. b. Provide the journal entries to accrue the interest expense for the first six months in the General Fund. c. Provide the transfer of the Interest due January 31, 2012 to the Debt Service Fund from the General Fund. This is for the payment of the Interest.



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