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What are GASB requirements for bonded debt?Town Oaks’ residents want to start a fund to improve their localcommunity. Town Oaks, a gated community, has voted to create aneighborhood park with bonded debt. The bonds will be repaid by theresidents and the following transactions are related to parkdebt:• The community has a tax burden for the park of $5,000,000,which is imposed on January 1, 20X7.• Payments start at the beginning of the current year and willbe paid in 10 equal annual payments.• 5% interest is due on the unpaid installments.• Payments and interest on the unpaid payments was collected byDecember 31, 20X7.• A small amount of the assessed receivables was reclassified tocurrent in the amount of 20X8 installments.• The initial principal payment of $500,000 and the interest onthe debt was paid to bondholders on January 1, 20X8.Required:• Identify the type of fund the city should impose to accountfor this special assessed debt.• Prepare journal entries for the city’s transactions.• Identify how the city should report the fund in theirfinancial statements?• Identify how the city should report special assessed debt intheir financial statements? •Compare the treatments of special assessed debt from the UnitedStates with at least two other countries. Would the same reportingpractices be used and why?