Please Do Not Give Solution In Image Format And explain proper steps by Step and Fast Answering Please ? On July 1, 2022, the first day of its 2023 fiscal year, the Town of Bear Creek issued at par $4,900,000 of 4 percent term bonds torenovate a historic wing of its main administrative building. The bonds mature in five years on July 1, 2027. Interest is payablesemiannually on January 1 and July 1.As illustrated in the table below, a sinking fund is to be established with equal semiannual additions made on June 30 and December31. Cash for the sinking fund additions and the semiannual interest payments will be transferred from the General Fund shortly beforethe due dates. Investment earnings are added to the investment principal.FiscalYear20232024202520262027Period12345678910RequiredAddition$447,500447,500447,500447,500447,500447,500447,500447,500447,500447,500ExpectedEarnings$08,95018,07927,39136,88846,57656,45866,53776,81887,304EndingBalance$ 447,500903,9501,369,5291,844,4202,328,8082,822,8843,326,8423,840,8794,365,1964,900,000Requireda-1. Prepare journal entries in the debt service fund for the following: (If no entry is required for a transaction/event, select "NoJournal Entry Required" in the first account field. Do not round intermediate calculations.) TransactionFundGeneral JournalDebitCredita. On July 1, 2022, record the budget for the fiscal year ended June 30, 2023. Include all interfund transfers to be received from the General Fund during theyear. An appropriation should be provided only for the interest payment due on January 1, 2023.aTerm Bond Debt Service FundRecord the budget for the fiscal year ended June 30, 2023.b. On December 28, 2022, the General Fund transferred $545,500 to the debt service fund for an interest payment and sinking fund addition. The requiredaddition to the sinking fund was immediately invested in 4 percent certificates of deposit.b1Term Bond Debt Service FundRecord the transfer from the general fund to the debt service fund.b23сc. On December 28, 2022, the city issued checks to bondholders for the interest payment due on January 1, 2023.Term Bond Debt Service FundRecord the interest payment on the bond.Show Transcribed TextRecord the investment in the certificates of deposit.d. On June 27, 2023, the General Fund transferred $545,500 to the debt service fund. The addition for the sinking fund was invested immediately in 4 percentcertificates of deposit.d1Term Bond Debt Service Fundd2Record the transfer from the general fund to the debt service fund.3d. On June 27, 2023, the General Fund transferred $545,500 to the debt service fund. The addition for the sinking fund was invested immediately in 4 percentcertificates of deposit.Record the transfer from the general fund to the debt service fund.d1Term Bond Debt Service FundRecord the investment in the certificates of deposit.Te. Actual interest earned on sinking fund investments at year-end (June 30, 2023) was the same as the amount budgeted in the table. This interest adds tothe sinking fund balance.eTerm Bond Debt Service FundRecord the actual interest earned on sinking fund investments.

Debt service refers to the total amount of money required by a business or individual to repay all…

On July 1, 2022, the first day of its 2023 fiscal year, the Town of Bear Creek issued at par $4,900,000 of 4 percent term bonds to renovate a historic wing of its main administrative building. The bonds mature in five years on July 1, 2027. Interest is payable semiannually on January 1 and July 1. As illustrated in the table below, a sinking fund is to be established with equal semiannual additions made on June 30 and December 31. Cash for the sinking fund additions and the semiannual interest payments will be transferred from the General Fund shortly before the due dates. Investment earnings are added to the investment principal. Fiscal Year 2023 2024 2025 2026 2027 Period 1 2 3 4 5 6 7 8 9 10 Required Expected Addition Earnings 0 $447,500 $ 447,500 8,950 447,500 18,079 27,391 36,888 46,576 447,500 447,500 447,500 447,500 447,500 447,500 447,500 56,458 66,537 76,818 87,304 Ending Balance. $ 447,500 903,950 1,369,529 1,844,420 2,328,808 2,822,884 3,326,842 3,840,879 4,365,196 4,900,000 Required a-1. 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.)

On July 1, 2022, the first day of its 2023 fiscal year, the Town of Bear Creek issued at par $4,900,000 of 4 percent term bonds to renovate a historic wing of its main administrative building. The bonds mature in five years on July 1, 2027. Interest is payable semiannually on January 1 and July 1. As illustrated in the table below, a sinking fund is to be established with equal semiannual additions made on June 30 and December 31. Cash for the sinking fund additions and the semiannual interest payments will be transferred from the General Fund shortly before the due dates. Investment earnings are added to the investment principal. Fiscal Year 2023 2024 2025 2026 2027 Period 1 2 3 4 5 6 7 8 9 10 Required Expected Addition Earnings 0 $447,500 $ 447,500 8,950 447,500 18,079 27,391 36,888 46,576 447,500 447,500 447,500 447,500 447,500 447,500 447,500 56,458 66,537 76,818 87,304 Ending Balance. $ 447,500 903,950 1,369,529 1,844,420 2,328,808 2,822,884 3,326,842 3,840,879 4,365,196 4,900,000 Required a-1. 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.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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