Assume you are the accounting supervisor for the City of Secret Valley, and you discover a violation the city made regarding its bond indentures. The city has four bond issues outstanding, and the bond indenture for each requires a separate accounting. In error, a new entry- level accounting clerk did not set up separate Debt Service Funds for each bond issue. It is the end of the current year, and you are responsible for preparing the annual report. In desperation, you go to your superior, Janet Well, the chief financial officer of the city, and ask her for guidance. She suggests you not worry about such a petty thing—“ No one reads these reports anyway.” What would you do?
Answer to relevant QuestionsReginald Canary, the mayor of the City of Bloomerville, is trying to locate available resources in the governmental-type funds to help “bail out” the General Fund. The General Fund expenditures currently exceed budgetary ...(Multiple choice) 1. Several years ago a city established a sinking fund to retire an issue of general obligation bonds. This year the city made a $ 50,000 contribution to the sinking fund from general revenues and realized ...Archambault Township authorized a bond issue for a parking garage wish an estimated cost of $ 4,000,000. The garage would be financed through a $ 2,500,000 bond issue and a $ 1,500,000 contribution from the General Fund. The ...The following transactions and events occurred in East Fritzsch Township. Record these transactions in journal form. Also, indicate the fund in which each transaction amount is recorded. 1. The township paid cash for four ...Does the accounting guidance issued by FASB apply to proprietary funds? Explain.
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