Question: The town of Sinking Creek has a semiannual debt service
The town of Sinking Creek has a semiannual debt service payment of $1,300,000 (including $1,000,000 interest) due on January 3, 20X5. The finance director transferred $1,500,000 from the General Fund to the Debt Service Fund on December 15, 20X4, to provide for this payment and future payments. Mayor Arnold Mills asks you if Sinking Creek is either required or permitted to accrue the $1,000,000 of interest at December 31, 20X4, the end of its fiscal year. Respond.
Answer to relevant QuestionsWhat is “deep discount debt”? When should expenditures for debt service on zero coupon bonds be reported?(a) Bond sinking fund investment securities have risen in value. Should the appreciation in value be recorded in the accounts of the Debt Service Fund? (b) Would your answer be different if the securities had declined in ...Barton Village has $7,000,000 of 10-year, 6% bonds maturing on March 15, 20X7. To repay the bonds and interest, the Village Council approved issuance of refunding bonds. Record the following:1. The village issued $7,300,000 ...Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the Broadus County Courthouse Bonds Debt Service Fund for 20X6, given the following information:Fund balance, January 1, 20X6 . . . . . . . . . . ...When is a capital asset considered to be impaired?
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