marloweville with 20000 residents is deciding how to finance the construction of a n 507513

Marloweville, with 20000, residents, is deciding how to finance

the construction of a new municipal golf course that will enhance

both recreation and tourism in the area. The construction costs of

the golf course is $10,000,000. By law all proceeds from debts

issuance are placed in the Marlowevilles capital projects fund and

all capital expenditures are made using this fund.

1. Show how Marloweville would record the transactions if it

were to issue a $10,000,000 bond and then use the proceeds to

construct the golf course.

2. Show how Marloweville would record the transactions if it

were to finance 50% of the contruction with a miniciple bond and

50% through a transfer from the Rainy Day Fund (a govermental

fund)

3. If at the end of the fiscal year, Marloweville makes a loan

repayment of $250,000 plus a $50,000 interest payment, the total

expenditure for the transaction will equal

a.0

b.250000

c.50000

d300000

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