Charter City issued $100 million of 6 percent, 20year general obligation bonds on January 1, 2017. The
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1. How much interest expenditures should the city report in its debt service fund statement for its fiscal year ending December 31, 2017? During 2017, the city did not transfer resources to the debt service fund for the interest payment due on January 1, 2018.
2. How much interest expense should the city report on its government‐wide statements for the year ending December 31, 2017? (It might be helpful to prepare appropriate journal entries.)
3. On January 1, 2037, the city repaid the bonds. How would the repayment be reflected on the city's (1) fund statements and (2) government‐wide statements?
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Government and Not for Profit Accounting Concepts and Practices
ISBN: 978-1118983270
7th edition
Authors: Michael Granof, Saleha Khumawala, Thad Calabrese, Daniel Smith
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