Falmouth City owns and operates a mini-bus system which it accounts for in an enterprise fund. Prepare
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Question:
The mini-bus system issued $5 million of 8 percent revenue bonds at par and used the proceeds to acquire new mini-buses.
As required by the bond covenant, the system set aside 1 percent of the gross bond proceeds for repair contingencies.
The system accrued 6 months interest on the revenue bonds at year-end.
The system incurred $30,000 of repair costs and paid for them with cash set aside for repair contingencies.
Related Book For
Advanced Accounting
ISBN: 978-0538480284
11th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
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