The Alpine school district engaged in the following transactions in its scal year ending August 31, 2015.

Question:

The Alpine school district engaged in the following transactions in its ﬁscal year ending August 31, 2015. By law, the district is required to establish a capital projects fund to account for school construction projects and a debt service fund to account for resources legally restricted to the payment of long-term principal and related interest.

• On March 1, it issued $40 million in general obligation bonds to ﬁnance the construction of a new junior high school. The bonds were to mature in 20 years (40 periods) and had a coupon rate of 4 percent per year (2 percent per semiannual period). They were sold for $38,924,728 (a discount of $1,075,272), a price that reﬂected an annual yield of 4.2 percent (2.1 percent per period).

• On August 31 the district made its ﬁrst interest payment of $800,000.

• During the year the builder with whom the district contracted to construct the building completed approximately 10 percent of the building and billed the district for $4 million.

• On August 31, the district issued $10 million in bond anticipation notes to ﬁnance improvements to its athletic facilities. By the time the district issued its ﬁscal year-end 2015 ﬁnancial statements in December 2015, it still had not reﬁnanced these notes and had not yet started construction on the facilities.• In June the district issued $2 million in tax anticipation notes. It repaid these notes in September. Interest applicable to the notes for the ﬁscal year ending August 31, 2015 was $25,000, all of which was paid in September when the notes matured.

• In August, the district settled a lawsuit with a group of former teachers. Per a structured settlement, the district agreed to make several payments totaling $1,600,000 to the teachers. The district has a policy of recording long-term obligations at present value whenever required or permitted by GAAP. It estimates the present value of this settlement to be $1,350,000. What amount relating to these transactions should the district report in its August 31, 2015, ﬁnancial statements as:

1. Interest expenditure in its debt service fund statement of revenues and expenditures?

2. Interest expense in its government-wide statement of activities?

3. Long-term debt in the capital projects fund balance sheet?

4. Current debt in the capital projects fund balance sheet?

5. Long-term debt in the debt service fund balance sheet?

6. Bonds payable (net of bond discount) in the government-wide statement of net position?

7. Other noncurrent debt in the government-wide statement of net position?

8. Invested in capital assets, in the government-wide statement of net position?

9. Current liabilities in the general-fund balance sheet?

Select each response from one of the amounts that follow.

An amount may be selected once, more than once, or not at all.

a. $(34,942,147)

b. $0

c. $25,000

d. $800,000

e. $817,419

f. $842,419

g. $1,350,000

h. $1,600,000

i. $2,000,000

j. $2,025,000

k. $10,000,000

l. $12,000,000

m. $12,025,000

n. $38,924,728

o. $38,942,147

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...