Start studying non profit ch 6 learn vocabulary, terms, and more with flashcards, games, and other study tools record estimated revenues in the budget entry and use the same property tax accounting as for the general fund when refunding (new) bonds are issued. If the registration fee refers to a fee expense that you had originally paid but the amount is now being refunded to you, i would credit the same expense account that you had originally charged or debited, and would debit cash if the registration fee refers to an amount you are refunding because. Accounting for long term debt in governments 1 long-term debt 2 objectives• accounting for debt transactions- – governmental funds – proprietary funds• reporting debt transactions- – government-wide financial statements – fund financial statements• question and answers2. This assignment, which involves accounting for a simple bond refunding, achieves several objectives first, it reinforces basic concepts in bond accounting, such as cash flows, book values. March 1, 2012 1 introduction and scope 11 source of tax exemption (a) general bond yield is the discount rate that, when used in computing issue as principal of the refunded bonds is paid off by the refunding issue (c) replacement proceeds (1.
The bonds are being issued for the purpose of advance refunding $6,925,000 of the issuer’s outstanding general obligation school bonds, series 2006, dated march 1, 2006, maturing march 1 of the years 2017 through 2031, inclusive (the “refunded bonds”), and paying the costs of. Credit - account #250 - bonds payable-current general long-term debt account group debit - account #300 - bonds payable credit - account #186 - amount to be provided for payment of debt principal proceeds of refunding bonds” in the fund receiving the proceeds payments to the escrow agent. A defeasance is a financing tool by which outstanding bonds may be retired without a bond redemption or implementing an open market buy-back cash is used to purchase government securities the principal of and interest earned on the securities are sufficient to meet all payments of principal and interest on the outstanding bonds as they become.
The attorney general must also receive an accounting and copies of all filed receipt and refunding bonds 3 specific bequests pay any specific bequests within 1 year 4 social security notify social security of the decedent’s death and return any social. Accounting for early extinguishments and advance refunding governmental funds — when debt is extinguished in governmental funds, the proper recording of the extinguishment depends on the resources used to extinguish the debt. The payment of general obligation refunding bonds may be additionally secured by a pledge of the revenues pledged to the payment of the revenue bonds to be refunded if the payment of revenue bonds to be refunded by general obligation bonds of the state is secured by (1) fees collected by the state as license fees for motor vehicles, or (2. General obligation bonds – pledge the full faith and credit of the state of alabama, and are payable from taxes and other general revenues sources general obligation bond issues are authorized by constitutional amendments. The refunded debt (old bond) is removed from and the refunding debt (new bond) is recorded in account 999 “general long-term obligations subsidiary account” in a proprietary or trust fund type account , when bonded debt is refunded (either a current or advance refunding), the refunded debt (old bond) is removed from, and the refunding debt.
Disclosures about long-term liabilities should be included in the notes to the financial statements to provide users with information about authorization of new debt issues, sale of previously authorized issues, and retirement and refunding of debt during the year. The bonds retired and the amount paid to retire the bonds is defined as an extraordinary gain or loss example: unisys corporation sfas #133 sets out the following general rules for accounting for derivatives • all derivatives are listed on the balance sheet at fair value • if the derivatives do not qualify as hedges, the changes in. Post a debit to the cash account for the amount of the refund the debit reduces the cash account balance, reflecting that you issued cash to the customer how to use the general journal to.
View notes - 3402- case 2 from accounting 3402 at university of missouri, st louis ross mckinstry general host: accounting for a bond exchange part i 1&2 year 5% bonds 11. A document called a refunding bond and release can be utilized and signed by each beneficiary to the estate they are then forwarded to the surrogate's office for filing if the decedent dies without a will, the bond posted can only be cancelled when the refunding bonds and releases are filed for all of the beneficiaries. Generalobligationbond 7,228 limitedtaxobligationbond 1,568 otherbond 2,948 refunded bonds the proceeds of the refunding bonds are either deposited in escrow to pay the the governmental accounting standards (gasb) board. Refunding a bond information before you refund to perform this refund there is one important factor to consider - their must be a paid refundable charge on the account in order for a refund to be successful. Release and refunding bonds “r&r bonds” in the state of new jersey, it is essential that executors and administrators obtain and file with the surrogate’s ourt, either an executed release or combined release & refunding ond from each beneficiary of the testator’s estate once debts and taxes of the state are paid, and the.
Recording entries for bonds when a company issues bonds, it incurs a long-term liability on which periodic interest payments must be made, usually twice a year if interest dates fall on other than balance sheet dates, the company must accrue interest in the proper periods. In a current refunding, the proceeds of the refunding bonds are used currently (immediately) to redeem the old debt in an advance refunding, the refunding bonds are issued in advance of the actual redemption and placed in an escrow account pending the call date or maturity date of the old debt. This assignment, which involves accounting for a simple bond refunding, achieves several objectives first, it reinforces basic concepts in bond accounting, such as cash flows, book values, interest expense and gains/losses from early extinguishment. Long-term debt refunding decision when interest rates have fallen and the bond is callable, it may be advantageous for the company to call in the old bonds and issue new bonds at the newer rate of interest (like refinancing a mortgage on your home.
A) governments may use a general fund, a special revenue fund, or a debt service fund to record capital lease payments since the annual lease payments are merely installment payments of general long-term debt b) at the inception of the lease an obligation is recognized at the government-wide level in an amount equal to the present value of the stream of annual payments. General host accounting for a bond refunding topics: stock 1975 of the payments that general host will make on the 11% bonds if they replace the 5% bonds principle $203 million, interest $2233 million, n 14, rate 11% = $20,300,000 present value of bonds: $203 million. Principal amount of the city’s general obligation stormwater drainage and flood management system bonds, series 200, dated june 277, 2007 (the “refunded bonds” ) on october 26, 2017(the “redemption date” ), and (b) the payment of certain costs of issuing the bonds.