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At the start of 2020, Hollywood Capital Project fund had no assets or liabilities. Prepare journal entries to record the transactions in the capital project fund. 22. Hollywood undertook construction of a new police station, designed to house both the Hollywood police and the county sheriff and to serve as detention center. To finance construction, Hollywood received a cash grant of $1,000,000 from the county as a cash advance pending incurrence of expenditures. It also sold $2,000,000 of 20-year general obligation bonds. The bonds, sold on April 1, 2020, at par were to be redeemed in equal semiannually installments of principal, with interest on the unpaid balance at a rate of 5% per annum, starting October 1, 2020.
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At the start of 2020, Hollywood Capital Project fund had no assets or liabilities. Prepare journal e...
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