Problem # 1 (need in word format)
The Kingwood Regional School District engaged in or was affected by the following events and transactions during its ?scal year ending June 30, 2015.
1. Teachers and other personnel earned $700,000 in vacations and other compensated absences that they did not take but for which they expect to be paid in the future.
2. The district settled a suit brought by a student, agreeing to pay $6 million by December 31, 2016.
3. The district issued $16million in GO bonds to ?nance an Addition to its high school. By year-end, it had expended $2 million in construction costs.
4. The district signed a three-year lease for of?ce space. Annual rent is $60,000 per year.
5. It acquired school buses and other vehicles, ?nancing them with an eight-year capital lease. Annual lease payments are $280,000. Had the district purchased the equipment outright, the price would have been $1,738,742 (rounded), re?ecting an interest rate of 6 percent.
6. The district transferred $1,000,000, representing the ?nal year’s principal payment, to a reserve fund required by the bond indenture.
7. To smooth out cash ?ows, the district issued 90-day tax anticipation notes of $1,900,000
8. The district paid teachers and other personnel $300,000 for compensated absences earned in previous years.
a. For each event, prepare the entries (as required) to record the transactions in the general fund or whatever other governmental fund seems most appropriate.
b. Prepare the entries that would be needed to re?ect the transactions and events in the district’s government-wide statements.