Determining Amounts to Report for Long-Term Liabilities On January 1, 2012, Metropolis City issued a 7%, 5-year, $100,000 general obligation bond for $96,007. The bond pays interest annually (on December 31) and was issued to yield 8%. The bond was issued in the capital projects fund, and the proceeds are to be used to build a giant ball that will drop twenty stories on New Year's Eve. No construction has occurred. A debt service fund was created to meet the interest and principal payments. The city prepares financial statements on December 31 of each year.

Determine how the above information will be reflected on each of the following statements for the year 2012.
1. The governmental funds' statement of revenue, expenditures, and changes in fund balances. List the governmental fund and then list the dollar amount within the appropriate heading on the statement (such as Revenues, Expenditures, or Other Financing Sources (Uses)).
2. The government-wide statement of net assets.
3. The government-wide statement of activities.

  • CreatedMarch 16, 2015
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