Dogwood County has a December 31 fiscal year- end. In November, the county borrowed $8 million from
Question:
Dogwood County has a December 31 fiscal year- end. In November, the county borrowed $8 million from a local bank, due in six months at 6 percent interest, to finance general government operations. The county pledges property tax revenues to secure the loan. At year-end, how should the county display the bank note in the governmental fund financial statements?
Nothing in the General Fund; Nothing in the schedule of changes in long-term obligations.
General fund--$8 million in other financing sources; Nothing in the schedule of changes in long-term obligations.
General fund--$8 million in other financing sources; $8 million in the schedule of changes in long-term obligations.
General fund--$8 million in notes payable; Nothing in the schedule of changes in long-term obligations.
Accounting Principles Part 2
ISBN: 978-1118306796
6th Canadian edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow