The City of Attross Entered the Following Transactions During 2011

question 24

Essay

The City of Attross entered the following transactions during 2011:
1.The city authorized a bond issue of $2,500,000 par to finance construction of a fountain and pavilion in the city square.The bonds were issued for $2,560,000.The premium was transferred to the fund for which the debt will be serviced.(This was a nonreciprocal transfer. )
2.The city entered into a contract for construction of the fountain at an estimated cost of $2,425,000.
3.The city received and paid a bill for $2,445,000 from the contractor upon completion of and approval of the fountain.
4.The unused bond proceeds were set aside for debt service on the bonds.Accordingly,those resources were paid to the appropriate fund(nonreciprocal).
Required:
Prepare journal entries for each of the above transactions.Identify the appropriate fund or funds used by Attross.

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Definitions:

Underages

Instances where the quantity or amount of something is less than what is expected, required, or legally necessary.

Personal Property Security Act

Legislation that governs the creation and registration of security interests in personal property to secure payment or performance of an obligation.

Repossessed

The act of taking back goods or property by a seller or lender from the buyer or borrower due to non-compliance with the terms of the sale or loan.

Resold

The act of selling an item or property again, especially after purchasing it from the original seller.