The City of Amarillo is authorized to issue $5,700,000, 5 percent regular serial
ID: 2566421 • Letter: T
Question
The City of Amarillo is authorized to issue $5,700,000, 5 percent regular serial bonds in 2017 for the construction a new exit off the interstate highway within city limits. The bonds mature in equal annual amounts beginning on January 1, 2018 for 10 years and pay interest on January 1 and July 1. The city is required to use all accrued interest and premiums to service the debt. The funds to pay the interest will be transferred from the General Fund. The county's fiscal year end is December 31 Required a. Prepare the budgetary entries for 2017 assuming that the bonds were scheduled to be issued on January 2. Assume that the January 1, 2018 principal and interest payments will be included in the 2018 budget. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.)Explanation / Answer
a...estimated other financing resources transferred in Dr 142500
Cr appropriations 142500
5700000 * 5% * 1/2 = 142500 intesrest payment