Prepare journal entries including adjusting entries needed

to record the
Prepare journal entries, including adjusting entries needed, to record the following transactions
for the Pickens County Transit Authority. Assume the fiscal year ends on April 30.1. Issued
refunding bonds at par, $10,000,000. The interest rate is 10%, payable annually. Bonds mature
in 10 years. Bond issue costs were $200,000.2. Retired old debt with refunding proceeds of
$9,800,000.• Bonds payable outstanding (old), $9,300,000.• Unamortized premium on
outstanding bonds, $300,000.• Remaining term of old debt, four years.3. Annual interest
payment ($1,000,000) on new bonds was made at the due date, which is year end.4. On April
30, 20X2, the Transit Authority leased 10 buses under a six-year, noncancellable capital lease.
The capitalizable cost of the buses was $680,000, and an $80,000 down payment was made.
The county does not receive title to the leased buses at the end of the lease term.5. Lease
payments made during the fiscal year ended April 30, 20X3, totaled $130,262, including interest
of $37,932.6. The county estimates its probable losses from claims and judgments against the
Transit Authority for events occurring in 20X2–20X3 at $227,000. However, only $85,000 of this
amount is a current liability.View Solution: Prepare journal entries including adjusting entries
needed to record the
SOLUTION-- http://solutiondone.online/downloads/prepare-journal-entries-including-adjusting-
entries-needed-to-record-the/

Unlock answers here solutiondone.online