(Restricted Asset Accounting) McKenzie’s Point issued $1,200,000 of 6%, 10-year serial bonds at…

(Restricted Asset Accounting) McKenzie’s Point issued $1,200,000 of 6%, 10-year serial bonds at par on July 1, 20X4. Interest is due semiannually on January 1 and July 1 each year, and one-tenth of the principal is due each July 1. The bond indenture requires that the proceeds be accounted for in a separate fund and used to construct an addition to the maintenance building for the municipal airport, which is accounted for in an Enterprise Fund. Furthermore, the bond agreement requires McKenzie’s Point to set aside airport revenues of $20,000 per month plus one-sixth of the next interest payment each month in a separate fund for debt service from which debt service payments are to be made. The following also occurred during 20X4:

July 2—The city signed a contract with Keith Construction for construction of the addition, $1,200,000.

July 31—The city set aside the required amount to provide for debt service.

August 29—The city received a bill from Keith Construction for $1,200,000 upon completion of the addition. After inspection and approval, the bill was paid.

August 31, September 30, October 31, November 30, and December 31—On each of these dates the city set aside the required amounts to provide for debt service.


Assuming August 31 is the end of the fiscal year of McKenzie’s Point, prepare the general journal entries, including adjusting and closing entries, for the preceding transactions. Ignore interest capitalization.


Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
error: Content is protected !!