If bonds are sold at a premium to finance a capital project, what important question arises concerning the premium? Discuss the proper accounting for a bond premium in the capital projects fund, the debt service fund, and the government-wide statements assuming that the premium must be reserved for debt service.
Answer to relevant QuestionsYou are a town council member in the seaside town of Pleasantville. Poor economic conditions and unusually severe weather conditions have affected tourism in the town, leading to significantly reduced sales, income, and ...A government’s MD&A states that government-wide net position decreased as a result of the issuance of a long-term liability during the current reporting period. Does this sound correct? How does the issuance of long-term ...Explain the reporting requirements for internal service funds and enterprise funds. Internal service funds and enterprise funds are both proprietary funds, so why do their reporting requirements differ?Inglis City had a beginning cash balance in its enterprise fund of $895,635. During 2014, the following transactions occurred:1. Interest received on investments totaled $42,400.2. The city acquired additional equity ...What is the difference between the letter of transmittal and the MD&A of a comprehensive annual financial report?
Post your question