Question - Debt-Related Transactions
Prepare the general journal entries (bugetary and actual) to record the following transaction of the Quinones County General Fund:
1. Quinones County borrowed $1,000,000 by issuing 6-month tax anticipation notes bearing interest at 6%. The notes are to be repaid from property tax collections during the fiscal year.
2. The county repaid the tax anticipation notes, along with $30,000 interest, at the due date.
3. The county ordered a new patrol car for the sheriff's department. The purchase order was for $35,000.
4. The county received the new patrol car two months before the end of the fiscal year. Its actual cost was $35,000. The county paid $5,000 upon receipt and signed a 9% short-term not payable for the balance.
5. The county services one of its general obligation serial bond issue directly from the general fund (a debt service fund is not used). The annual principal and interest payment, which is due two months before year end, was paid. The prinipal payment was $200,000 and the interest was $120,000. (Next year's interest payment will be $108,000.)
6. Record all appropriate interest accruals.
This comes from the book Non-Profit and Municipal Accounting second edition it is chapter 4 problem 4-4 thanks for your help in this matter I had sent a copy earlier thanks.