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Both Waste, Inc. (a private trash collector) and Croton Falls Village will acquire new sanitation trucks. Both will borrow long term, making similar financial arrangements to finance the trucks, and both will pay the same amount to acquire the trucks. Waste, Inc. uses normal commercial GAAP to account for its activities. Croton Falls Village maintains a Capital Projects Fund and aDebt Service Fund for its accounting. The following transactions and events will occur in calendar year 2013. Make journal entries to record these transactions and events, as applicable, first for Waste, Inc. and then for Croton Falls Village. For Croton Falls Village, indicate the appropriate fund in which the transactions are recorded.1. April 1. Sells bonds for $ 300,000. The bonds are payable in 20 semiannual installments of $ 15,000 each, with interest of 5 percent per annum on the unpaid balance, starting October 1, 2013.2. April 1. Acquires sanitation trucks at a total cost of $ 300,000. The trucks have an estimated useful life of 10 years.(Make journal entry only to record payment of cash.)3. October 1. Pays the first installment of principal and interest on the long term debt.(Ignore entry to record the source of cash to make payment.)4. December 31. Makes adjusting journal entries, as necessary to prepare financial statements.
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