The city of Lora issued $5,000,000 of general government, general obligation, 8%, 20-year bonds at 103 on
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The city of Lora issued $5,000,000 of general government, general obligation, 8%, 20-year bonds at 103 on April 1, 20X7, to finance a major general government capital project. Interest is payable semiannually on each October 1 and April 1 during the term of the bonds. In addition, $250,000 of principal matures each April 1.
Assume the same information as in item 1, except that Lora has not made the October 1, 20X7, interest payment as of the fiscal year-end. What amount of debt service expenditures should be reported for this DSF for the 20X7 fiscal year?
a. $0.
b. $200,000.
c. $300,000.
d. $400,000.
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Related Book For
Governmental And Nonprofit Accounting Theory And Practice
ISBN: 9780132552721
9th Edition
Authors: Robert J Freeman, Craig D Shoulders, Gregory S Allison, Terry K Patton, Robert Smith,
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