Chapter 8:

Exercise 8-2 (Questions 1 through 10) textbook pages 354-355

(Enter the letters a, b, c, or d next to the question number)

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10.

Continuing Problem (Questions 1 through 8) textbook pages 358 2019 Town of Cary, NC CAFR is used for these questions found at ...

(Enter the answer to the question next to the question number and letter if present)

1. Total long-term obligations for both governmental and business-type activities - _______________

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Does this amount reconcile with the long-term liabilities as reported on the government-wide statements of net position? Yes or No - ________________________________________________

2. Other than bonds payable, what other kinds of long-term debt does the Town of Cary report in its statement of net position? ________________________________________________

3. Increase or decrease long-term borrowing during 2019? _____________________________

Effect on total long-term liabilities at year-end? Explain. ____________________________

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4. Percentage total net bonded debt to assessed value of property? ______________________

Amount of net debt per capital? ________________________________________________

5. Town of Carys legal debt margin? _______________________________________________

6. Lease obligations outstanding Yes or No - _______________________________________

Accounted for as operating or financing leases? ___________________________________

Were any of the leases initiated during 2019? Yes or No _____________________________

Amount of payments related to financing leases? __________________________________

7. Compute the total amount of the citys direct and overlapping debt? __________________

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8. Outstanding conduit debt? Yes or No ____________________________________________

Problem 8-2 textbook page 359

1. Journal entry

	Debit	Credit

Why does the reported liability differ from the face of the bonds? __________________________________________________________________________

2. Journal entry

	Debit	Credit

What value would the bonds be reported immediately following the payment? _________

Why is the reported interest expense not equal to the amount paid? __________________ __________________________________________________________________________

3. For the scenario presented on page 359 (under 3), how much could the district liquidate its obligations by acquiring all outstanding bonds in the open market? _______________

Would the amount be reported in the districts financial statements (both fund and government-wide)? _______________________________________________________

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Why and how might this amount be of interest to statement users? _________________

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4. How would the district report both the liability and interest costs in its fund statements? _____________________________________________________________

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