A city issues $500,000 of 10-year general obligation bonds on April 1, 2013. It is required to make a principal payment of $50,000 on April 1 of each year, starting with April 1, 2014, with interest of 4 percent per annum paid on the unpaid principal. How much interest expenditure and expense should the city recognize in its governmental fund and government-wide operating statements for the calendar year ending December 31, 2013?

Answer rating: 100% (QA)

A general obligation bond is a common type of municipal bond in the United States that is secured by ... View the full answer