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



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  • CreatedAugust 13, 2014
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