Marloweville, with 20000, residents, is deciding how to finance the construction of a new municipal golf course that will enhance both recreation and tourism in the area. The construction costs of the golf course is $10,000,000. By law all proceeds from debts issuance are placed in the Marlowevilles capital projects fund and all capital expenditures are made using this fund.
1. Show how Marloweville would record the transactions if it were to issue a $10,000,000 bond and then use the proceeds to construct the golf course.
2. Show how Marloweville would record the transactions if it were to finance 50% of the contruction with a miniciple bond and 50% through a transfer from the Rainy Day Fund (a govermental fund)
3. If at the end of the fiscal year, Marloweville makes a loan repayment of $250,000 plus a $50,000 interest payment, find the total expenditure for the transaction?