A state borrowed $10,000,000 on a nine-month, 9% note payable to provide temporary financing for the General

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A state borrowed $10,000,000 on a nine-month, 9% note payable to provide temporary financing for the General Fund. At year end, the note has been outstanding for six months.

The state should report General Fund interest expenditures and interest payable on the short-term note in its financial statements of

a. $0; the interest will be recognized when it matures.

b. $450,000.

c. $450,000 unless the state does not expect to be able to pay the interest when it matures.

d. $675,000.

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Governmental And Nonprofit Accounting

ISBN: 9781292040080

10th International Edition

Authors: Robert J. Freeman, Craig D. Shoulders, Gregory S. Allison, G. Robert Smith

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Question Posted: Feb 18, 2024 04:00 AM

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A state borrowed $10,000,000 on a nine-month, 9% note payable to provide temporary financing for the General

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The correct answer is b 450000 The state should report General Fund interest ex...View the full answer

Governmental And Nonprofit Accounting

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