Problem:
Prepare all journal entries in all funds and the GCA and GLTL accounts to record the following transactions and events.
1. A state issued $50,000,000 of 4%, 20 year term bonds at 105 to provide financing for construction of a new state legislative office building. The premium which is to be used for debt service, was transferred to the appropriate fund. Bond issue costs of $75,000 were paid directly from the General Fund. The Bonds were issued on April 1, 20X1, and annual interest is due each March 31.
2. The state signed contracts for $55,000,000 for construction of the building. Costs incurred for construction of the office building during 20x1 amounted to $18,000,000 and all but 10% was paid.
3. Annual interest of $2,000,000 was paid on the bonds on March 31,20X2.
4. General Fund resources $5,000,0000 were transferred to the legislative office building capital Projects Fund during 20X2 for use on project.
5. The project was completed. Expenditures in 20X2 totaled $36,500,000 and all fund liabilities were paid. The remaining resources to be used for debt service were paid to the appropriate fund.
6. $3,300,000 was transferred from the general fund to service the bond in 20X3.
7. interest of $2,000,000 was paid on March 31, 20X3.
8. The bonds were retired on March 31 of 20Z1. Funds totaling $46,000,000 had been accumulated previously in the Debt Service Fund to retire the bonds; the remaining needed to retire the bonds and make the last $2,000,000 interest payment was transferred from the general Fund in 20Z1.