Reference no: EM132918666
Question - Beachfront property owners of the Town of Eden Beach requested a seawall be constructed to protect their beach. The seawall was financed through a note payable, which was to be repaid from taxes raised through a special assessment on their properties. The Town guarantees the debt and accounts for the special assessment through a debt service fund. Assume the special assessments were levied in 2019, recording a special assessment tax receivable and deferred inflow in the amount of $450,000. One-third of the assessment is to be collected each year and used to pay the interest and principal on the note.
Record the following transactions that occurred in 2020:
June 30, $150,000 of the assessments became due and currently receivable. (Hint: The special assessment tax is recorded as revenue in the debt service fund when it becomes due.)
July 31, the $150,000 was collected.
September 30, interest of $22,500 and principal of $127,500 were paid.
December 31, the books were closed.
|
What is the interest income for the year
: On June 30, 2019, ABC acquired a non-interest bearing, 3-year, P6,000,000 face value serial bonds for P4,800,000. What is the interest income for the year
|
|
Find amount remitted by the consignee
: Find Net income by the consignor as a result of the above transactions. Paul, Inc., agrees to transfer television sets to Walker Bros. on a consignment basis.
|
|
Difference between cash and accrual accounting
: Describe is the difference between cash and accrual accounting. Describe difference between revenue recognition and cash flow statement
|
|
Creates huge requirement for manpower for cleanup
: The recovery phase of any disaster event creates a huge requirement for manpower for cleanup, repair, and restoration.
|
|
Record the transactions that occurred
: Record the following transactions that occurred in 2020: June 30, $150,000 of the assessments became due and currently receivable
|
|
In how many years is the received
: If the future receipt is discounted at an interest rate of 9%, its present value is $341272. In how many years is the $680000 received?
|
|
What amount should the investment grow in five years
: Flint invested $230000 she received from her grandmother today. To what amount should the investment grow in five years if interest is compounded semi-annually?
|
|
Comparative analysis technique
: Select a current international event and, using the comparative analysis technique,
|
|
How much will need to set aside at beginning of each year
: If she is able to earn 8% per annum on an investment, how much will she need to set aside at the beginning of each year to accumulate sufficient funds?
|