Prepare a schedule disclosing the changes in long-term


From records available in various offices of Baraga County, you find the following information about changes in long-term liabilities of the county during the year ended June, 2009:

1) At the end of the 2008 fiscal year, $500,000 was still outstanding on an issue of a 3 percent serial bond that matures at the rate of $250,000 per year. The payment during fiscal year 2009 has been made by the debt service fund.

2) Baraga County council decided to fund the General Fund deficit with an issue of four-year notes totaling $480,000. The notes were issued on July 1, 2008, and were to be retired at the rate of $120,000 per year; the first payment was to be made on July 1, 2009 by the debt service fund.

3) At the end of the 2008 fiscal year, $100,000 par value of general obligation serial bonds were outstanding, from an original amount of $400,000. Annual maturities of $25,000 had been paid on December 31, or each year.

4) In FY 2008 an issue of 7 percent serial bonds was sold in the amount of $6,000,000. The issue matures at the rate of $300,000 per year. The first payment was made in FY 2009.

5) On June 30, 2009 the county had outstanding $200,000 of 4 percent serial bonds that had been issued to finance a revenue-producing recreation facility. On June 1, 2009 bonds in the amount of $50,000 were paid. The bonds are being paid from enterprise revenues; they carry a covenant that obligates the county to levy taxes to service the debt if enterprise revenues are insufficient. It is expected that enterprise revenues will be sufficient to retire the bonds on schedule.

6) During FY 2009 a $300,000 issue of 6 percent term bonds matured, with little provision having been made for their payment. The bonds were closely held, and arrangements were made with holders of all but $25,000 to accept 8 percent refunding serial bonds. Cash was paid to creditors who declined to accept refunding bonds.

Required

Prepare a schedule disclosing the changes in long-term liabilities for Baraga County for the year ended June 30, 2009.

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Financial Management: Prepare a schedule disclosing the changes in long-term
Reference No:- TGS02666173

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