Marloweville, with 20,000 residents, is deciding how to finance the construction of a new municipal golf course
Question:
1. Show how Marloweville would record the trans-action(s) if it were to issue a $ 10,000,000 bond and then use the proceeds to construct the golf course.
2. Show how Marloweville would record the transaction if it were to finance 50 percent of the construction with a municipal bond and 50 percent thorugh a transfer from the Rainy Day Fund *(a governmental fund).
3. If at the end of the fiscal year, Marloweville makes a loan repayment of $ 250,000, plus a $ 50,000 interest payment, the total expenditure for the transaction will equal:
a. $ 0
b. $ 250,000
c. $ 50,000
d. $ 300,000
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Related Book For
Financial Management for Public Health and Not for Profit Organizations
ISBN: 978-0132805667
4th edition
Authors: Steven A. Finkler, Thad Calabrese
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