A state borrowed $10,000,000 on a nine-month, 9% note payable to provide temporary financing for the General
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A state borrowed $10,000,000 on a nine-month, 9% note payable to provide temporary financing for the General Fund. At year end, the note has been outstanding for six months.
The state should report General Fund interest expenditures and interest payable on the short-term note in its financial statements of
a. $0; the interest will be recognized when it matures.
b. $450,000.
c. $450,000 unless the state does not expect to be able to pay the interest when it matures.
d. $675,000.
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Related Book For
Governmental And Nonprofit Accounting
ISBN: 9781292040080
10th International Edition
Authors: Robert J. Freeman, Craig D. Shoulders, Gregory S. Allison, G. Robert Smith
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