Various funds and account groups, capital projects fund financial statement. Mountain View’s citizens authorized the construction of a new library. As a result of this project, the city had the...

Various funds and account groups, capital projects fund financial statement. Mountain View’s citizens authorized the construction of a new library.

As a result of this project, the city had the following transactions during 2018:

a. On January 3, 2018, a $600,000 serial bond issue having a stated interest rate of 8% was authorized for the acquisition of land and the construction of a library building. The bonds are to be redeemed in 10 equal annual installments beginning February 1, 2019.

b. On January 10, 2018, the city made a $50,000 down payment deposit on the purchase of land, which is to be the site of the library. The contracted price for the land is $150,000, which is $40,000 below what the city estimated it would have to spend to acquire a site.