Willie is the production manager of the sterile ophthalmic formulations division of Pharmogrep, a pharmaceutical manufacturing c
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Answer and explanation:
<em>Check the attached file for a well formatted answer</em>
1 December 1, 2017 entry in Debt service fund
Expenditure-Bond Interest $137,500
Cash $137,500
Semiannual interest rate = 5.5%/2 = 2.75%
Interest = $5 million x 2.75% = $137500
2 December 1, 2017 entry in government wide level
Expenses-Interest on long term debt $137,500
Cash $137,500
3 December 31, 2017 entry in the government-wide level
Expenses-Interest on long term debt $22,917
Accrued Interest payable $22,917
1 month accrued interest on bond = ($5 million x 5.5%)/12 =$22917
4 June 1, 2018 entry in Debt service fund
Expenditure-Bond principal $500,000
Expenditure-Bond interest $137,500
Cash $637,500
Cash $637,500
Due from General fund $637,500
5 June 1, 2018 entry in government-wide level
Expenses-Interest on long term debt $137,500
Serial Bonds Payable $500,000
Cash $637,500
6 December 1, 2018 entry in Debt service fund
Expenditure-Bond Interest $123,750
Cash $123,750
Semiannual interest rate = 5.5%/2 = 2.75%
Interest = $4.5 million x 2.75% = $123750
7 December 1, 2018 entry in government wide level
Expenses-Interest on long term debt $123,750
Cash $123,750
8 December 31, 2018 entry in the government-wide level
Expenses-Interest on long term debt $20,625
Accrued Interest payable $20,625
1 month accrued interest on bond = ($4.5 million x 5.5%)/12 =$20625
