Question: It is sometimes said that in debt service funds the
It is sometimes said that in debt service funds the accounting for interest revenue is inconsistent with that for interest expenditure. Explain. What is the rationale for this seeming inconsistency?
Relevant QuestionsAt one time governments maintained a unique type of fund to account for special assessments. This fund recorded the construction in process, the long-term debt, and the assessments receivable. Explain brieﬂy how ...What is meant by an in-substance defeasance, and how can a government use it to lower its interest costs? How must it recognize a gain or loss on defeasance if it accounts for the debt in a proprietary fund? How do the GASB ...On July 1, a city issued, at par, $100 million in 6 percent, 20-year general obligation bonds. It established a debt service fund to account for resources set aside to pay interest and principal on the obligations. In the ...Charter City issued $100 million of 6 percent, 20-year general obligation bonds on January 1, 2014. The bonds were sold to yield 6.2 percent and hence were issued at a discount of $2.27 million (i.e., at a price of $97.73 ...A city levies a property tax that is restricted for future period payments of principal and interest on outstanding debt. The tax receipts are recorded in a debt service fund and are invested in interest-and dividend-earning ...
Post your question