Capital & Sewer Capital

Question 1

On April 12, 2012 the governing body adopted to finance the following ordinance:

Reconstruction: Various Roads
Capital Improvement Fund - $50,000
Debt Authorization - $950,000
Total $1,000,000

Answer 1

Dr Def Chg - Unfunded      $950,000
Dr Cap Imp Fund               $  50,000
Cr     Imp Auth Funded             $50,000
Cr     Imp Auth Unfunded        $950,000
To record Bond Ordinance

Dr Est Proceeds B&NANYI $950,000
Cr Proceeds B&NANYI $950,000
To record memo

Question 2

On October 1, 2012 Serial bonds were issued in the amount of $900,000. No expenditures were made. Entries

Answer 2

Dr Cash $900,000
Cr Serial Bonds $900,000
To record cash entry

Dr Def chg - Funded       $900,000
Dr Imp Auth - Unfunded  $900,000
Cr   Def Chg - Unfunded       $900,000
Cr   Imp Auth  - Funded        $900,000
To record serial bond financing

Dr Proceeds B&NANYI $900,000
Cr Est Proceeds B&NANYI $900,000
To reverse memo entry

Question 3

2013 funds were appropriated to retire bond principal. General Capital Serial Bonds - $40,000. What are the entries in Current Fund and General Capital Fund?

Answer 3

Current Fund:
Dr Bud Approp - Bond Principal $40,000
Cr Cash $40,000
To record serial bonds retired

General Capital Fund:
Dr Serial Bonds $40,000
Cr Def Chg - Funded $40,000
To record bond payment

Question 4

During 2013 capital project was declared complete with the following balance to be cancelled - Reconstruction: Various Roads $20,000. Prepare the entries.

Answer 4

Dr Imp Auth - Unfunded $20,000
Cr Def Chg - Unfunded $20,000
To record cancellation

Dr Proceeds B&NANYI $20,000
Cr Est proceeds B&NANYI $20,000
To reverse memo entry

Question 5

On April 12, 2012 the governing body adopted to finance the following Utility Capital ordinance:

Replace Pump Station
Capital Improvement Fund - $30,000
Debt Authorization - $570,000
Total $600,000

Answer 5

Dr Fixed cap auth & uncomp $600,000
Dr Capital improve fund $ 30,000
Cr Imp auth - funded $30,000
Cr Imp auth - unfunded $570,000
Cr Res for Def Amort $30,000
To record bond ordinance

Dr Est Proceeds B&NANYI $570,000
Cr Proceeds B&NANYI $570,000
To record memo

Question 6

On October 1, 2012 Serial bonds were issued in the amount of $550,000. No expenditures were made. Entries

Answer 6

Dr Cash $550,000
Cr Serial Bonds $550,000

Dr Imp Auth - Funded $550,000
Cr Imp Auth - Unfunded $550,000
To record Serial bond financing

Dr Proceeds B&NANYI $550,000
Cr Est Proceeds B&NANYI $550,000
To reverse memo entry

Question 7

2013 funds were appropriated to retire bond principal. Utility Capital Serial Bonds - $25,000. What are the entries in Utility Operating and Utility Capital Fund?

Answer 7

Utility Operating Fund:
Dr Bud Approp - Bond Princ $25,000
Cr Cash $25,000
To record bond payment

Utility Capital Fund:
Dr Serial Bonds $25,000
Cr Res for Def Amort $25,000
To record serial bonds retired

Question 8

During 2013 utility capital project was declared complete with the following balance to be cancelled - Replace Pump Station $5,000. Prepare the entries.

Answer 8

Dr Imp Auth - Unfunded $5,000
Cr Fixed Cap Auth & Uncomp $5,000
To record cancellation

Dr Fixed Capital         $595,000
Dr Res for def amort  $  55,000
Cr   Fixed cap auth & uncomp    $595,000
Cr   Reserve for amortization      $ 55,000
To record completed project

Dr Proceeds B&NANYI $5,000
Cr Est Proceeds B&NANYI $5,000
To reverse memo entry