Mike Village sold 1 000 000 of general obligation bonds on
Mike Village sold $ 1,000,000 of general obligation bonds on October 1, 2012, maturing at the rate of $ 100,000 every 6 months starting April 1, 2013, and paying interest at the rate of 4 percent per annum on the unpaid balance. Compute
(a) The interest expenditure Mike will report in its fund statement of revenues, expenditures, and changes in fund balances for the calendar years ended December 31, 2012, and 2013 and
(b) The interest expense Mike will report in its government- wide statement of activities for the same calendar years. Also, prepare journal entries needed to adjust Mike’s 2013 fund financial statements so government- wide statements can be prepared.

Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
Relevant Tutors available to help