A county builds a new road for residents in a previously undeveloped section of the county, financing the project with $15,000,000 in 2.5% bonds issued on July 1, 2019. The bond principal will be repaid in ten equal installments over the next ten years, on June 30 of each year, starting on June 30, 2020. Affected residents will be assessed over the next ten years to retire the bonds and pay interest on outstanding bonds. The county has no liability for the bonds, and records transactions related to assessment of the residents and payment of the bond principal and interest using a custodial fund. Assume uncollectible amounts are negligible. The county’s year ends on June 30. Using the attached T-account template or a spreadsheet with proper classifications and account names, prepare the journal entries in the custodial fund to: Record the levy for fiscal 2020. Record collection of the fiscal 2020 assessment. Record payment of principal and interest for fiscal 2020. Record the levy for fiscal 2021.

A county builds a new road for residents in a previously undeveloped section of the county, financing the project with $15,000,000 in 2.5% bonds issued on July 1, 2019. The bond principal will be repaid in ten equal installments over the next ten years, on June 30 of each year, starting on June 30, 2020. Affected residents will be assessed over the next ten years to retire the bonds and pay interest on outstanding bonds. The county has no liability for the bonds, and records transactions related to assessment of the residents and payment of the bond principal and interest using a custodial fund. Assume uncollectible amounts are negligible. The county’s year ends on June 30. Using the attached T-account template or a spreadsheet with proper classifications and account names, prepare the journal entries in the custodial fund to: Record the levy for fiscal 2020. Record collection of the fiscal 2020 assessment. Record payment of principal and interest for fiscal 2020. Record the levy for fiscal 2021.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 53P

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