The Following Transactions Take Place

question 34

Essay

The following transactions take place:
1. On January 1, the city issued 9% general obligation bonds with a face value of $4,000,000 payable in 10 years to finance the construction of city offices. Total proceeds were $4,500,000.
2. On December 20, construction was completed and occupancy taken of the city offices. The full cost of $3,900,000 was paid to the contractor, and appropriate closing entries were made with regard to the project.
3. The General Fund repaid the Special Revenue Fund a loan of $15,000 plus $900 in interest on the loan.
Required:
Prepare entries in general journal form to record these transactions in the proper fund(s). Designate the fund in which each entry is recorded.

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Definitions:

Indicator Variables

Variables used in statistical models to represent categorical data by assigning numerical values, such as 0 or 1, to different categories.

Indicator Variables

Indicator variables are numerical or categorical variables in statistics that take on a value of 0 or 1 to indicate the absence or presence of a particular characteristic or attribute.

Inferences

The process of drawing logical conclusions about a population based on sample data.

Multiple Regression Model

A method in statistics that takes advantage of various influencing factors to predict the response of a dependent variable.