Problem 2: true/false questions Use the following information to answer questions 21 and 22. A water...

 

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Problem 2: true/false questions Use the following information to answer questions 21 and 22. A water utility issued $20,000,000 of face value 3% revenue bonds on September 30, 2021. The bonds were sold for $21,500,000, a price that resulted in a yield 2.5%. The bonds pay interest on March 31 and September 30, and, starting on September 30, 2022, $1,000,000 of bond principal will mature and be paid. Which of the following statements is correct on the December 31, 2021, statement of net position for the water utility? 1. Interest payable of $161,250 will be reported under current liabilities. 2. $19,000,000 of bonds payable will be reported under long-term debt. Problem 2: true/false questions Use the following information to answer questions 21 and 22. A water utility issued $20,000,000 of face value 3% revenue bonds on September 30, 2021. The bonds were sold for $21,500,000, a price that resulted in a yield 2.5%. The bonds pay interest on March 31 and September 30, and, starting on September 30, 2022, $1,000,000 of bond principal will mature and be paid. Which of the following statements is correct on the December 31, 2021, statement of net position for the water utility? 1. Interest payable of $161,250 will be reported under current liabilities. 2. $19,000,000 of bonds payable will be reported under long-term debt.

Answer rating: 100% (QA)

Interest payable as on 31 dec 2021 21500000 x 00252 x 36 ... View the full answer