Dayton County decided to refund an outstanding term bond issue in its Enterprise Fund. The old bonds have a par value of $3,200 and an unamortized premium of $120. These bonds are scheduled to mature in 6 more years.
$\underline{\text{ Transactions:}}$
1. On January 2, 20X2, the County issued $3,700 face value of refunding bonds at a $350 premium for a total of $4,050. The bonds bear interest at 5% payable annually and mature in 5 years. The bond issuance costs were $250.
2. On January 2, The County paid $3,800 into an irrevocable trust in order to defease in-substance the previously outstanding bonds payable of the Enterprise Fund.
3. The annual interest payment on the new bonds was made on December 31 when due.
$\underline{\text{ Requirements: }}$
1. Prepare the journal entries required in an Enterprise. If no entry is required, state "No entry required" and explain why.
2. Indicate how all bond and refunding related amounts should be reported at December 31, 20X2.

Question

Dayton County decided to refund an outstanding term bond issue in its Enterprise Fund. The old bonds have a par value of $3,200 and an unamortized premium of $120. These bonds are scheduled to mature in 6 more years.
$\underline{\text{  Transactions:}}$  
1. On January 2, 20X2, the County issued $3,700 face value of refunding bonds at a $350 premium for a total of $4,050. The bonds bear interest at 5% payable annually and mature in 5 years. The bond issuance costs were $250.
2. On January 2, The County paid $3,800 into an irrevocable trust in order to defease in-substance the previously outstanding bonds payable of the Enterprise Fund.
3. The annual interest payment on the new bonds was made on December 31 when due.
$\underline{\text{ Requirements: }}$  
1. Prepare the journal entries required in an Enterprise. If no entry is required, state "No entry required" and explain why.
2. Indicate how all bond and refunding related amounts should be reported at December 31, 20X2.

Quizplus · Accepted Answer

The Answer of Dayton County decided to refund an outstanding term bond issue in its Enterprise Fund. The old bonds have a par value of $3,200 and an unamortized premium of $120. These bonds are scheduled to mature in 6 more years.
$\underline{\text{  Transactions:}}$  
1. On January 2, 20X2, the County issued $3,700 face value of refunding bonds at a $350 premium for a total of $4,050. The bonds bear interest at 5% payable annually and mature in 5 years. The bond issuance costs were $250.
2. On January 2, The County paid $3,800 into an irrevocable trust in order to defease in-substance the previously outstanding bonds payable of the Enterprise Fund.
3. The annual interest payment on the new bonds was made on December 31 when due.
$\underline{\text{ Requirements: }}$  
1. Prepare the journal entries required in an Enterprise. If no entry is required, state "No entry required" and explain why.
2. Indicate how all bond and refunding related amounts should be reported at December 31, 20X2.

Dayton County Decided to Refund an Outstanding Term Bond Issue Transactions:‾\underline{\text{ Transactions:}} Transactions:​

Dayton County Decided to Refund an Outstanding Term Bond Issue $\underline{\text{ Transactions:}}$