Following is Grant County’s debt service fund pre-closing trial balance for the
ID: 2566395 • Letter: F
Question
Following is Grant County’s debt service fund pre-closing trial balance for the fiscal year ended June 30, 2017. GRANT COUNTY Debt Service Fund Pre-closing Trial Balance June 30, 2017 Debits Credits Cash $ 257,000 Investments 66,000 Fund Balance – Restricted $ 60,400 Budgetary Fund Balance ? Estimated Other Financing Sources 6,919,000 Estimated Revenue 2,684,300 Revenue – Sales Taxes 1,425,200 Revenue – Investment Earnings 13,400 Other Financing Sources – Interfund Transfers In 181,000 Other Financing Sources – Proceeds of Refunding Bonds 7,920,000 Estimated Other Financing Uses 7,920,000 Appropriations 1,357,000 Expenditures – Bond Interest 527,000 Expenditures – Bond Principal 830,000 Other Financing Uses – Payment to Escrow Agent 7,920,000 Using information provided by the trial balance, answer the following. rev: 10_19_2015_QC_CS-29957
a. Assuming the budget was not amended, what was the budgetary journal entry recorded at the beginning of the fiscal year? (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
b. What is the budgetary fund balance?
c. Did the debt service fund pay debt obligations related to capital leases? Yes No
d. Did the debt service fund perform a debt refunding? Yes No
Also,
Can you show the actual journal entry to "Record the budgetary Journal Entry at the beginning of the fiscal year"?
Explanation / Answer
a. Budgetary Journal entry recorded at the beginning of the fiscal year, assuming the budget was not amended:
b. Budgetary fund balance as calculated in (a) above will be $326,300
c. No, The only interest and principal expenditures related to bonds are recorded. If capital lease payments had been made interest and principal expenditures related to lease would be recorded.
d. Yes.Other Financing Sources - Proceeds of Refunding and Other Financing Uses - Payment to Escrow Agent indicate that a bond refunding has occurred.
Account Titles Debits $ Credits $ Estimated other Financing Sources 6,919,000 Estimated Revenues 2,684,300 Estimated other Financing Uses 7,920,000 Appropriations 1,357,000 Budgetary Fund Balance 326,300