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Interest expense adjustments for government-wide financial statements Mike Village sold $1,800,000 of general obligation bonds on October 1, 2021, maturing at the rate of $180,000 every 6 months starting April 1, 2022, and paying interest at the rate of 2 percent per annum on the unpaid balance. Use the above information to calculate the following: a) Interest expenditure reported in the governmental f statement of revenues, expenditures, and changes in fund balance $ B) Interest expense reported in the government-wide statement of activities Account To record adjustment for 2021 activity. $ To record adjustment for 2022 activity. Check 2021 $ LA c) Prepare the journal entries needed to adjust the fund statements so government-wide statements can be prepared. If no entry is necessary, select 'No debit (or credit) entry needed' in the account fields and enter 0 in the amount fields. Debit $ 2022 Credit

Interest expense adjustments for government-wide financial statements Mike Village sold $1,800,000 of general obligation bonds on October 1, 2021, maturing at the rate of $180,000 every 6 months starting April 1, 2022, and paying interest at the rate of 2 percent per annum on the unpaid balance. Use the above information to calculate the following: a) Interest expenditure reported in the governmental f statement of revenues, expenditures, and changes in fund balance $ B) Interest expense reported in the government-wide statement of activities Account To record adjustment for 2021 activity. $ To record adjustment for 2022 activity. Check 2021 $ LA c) Prepare the journal entries needed to adjust the fund statements so government-wide statements can be prepared. If no entry is necessary, select 'No debit (or credit) entry needed' in the account fields and enter 0 in the amount fields. Debit $ 2022 Credit

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Interest expense adjustments for government-wide financial statements Mike Village sold $1,800,000 of general obligation bonds on October 1, 2021, maturing at the rate of $180,000 every 6 months starting April 1, 2022, and paying interest at the rate of 2 percent per annum on the unpaid balance. Use the above information to calculate the following: a) Interest expenditure reported in the governmental fund statement of revenues, expenditures, and changes in fund balance $ B) Interest expense reported in the government-wide statement of activities Account $ To record adjustment for 2021 activity. 2021 To record adjustment for 2022 activity. Check $ c) Prepare the journal entries needed to adjust the fund statements so government-wide statements can be prepared. LA If no entry is necessary, select 'No debit (or credit) entry needed' in the account fields and enter 0 in the amount fields. Debit $ 2022 Credit
Transcribed Image Text:Interest expense adjustments for government-wide financial statements Mike Village sold $1,800,000 of general obligation bonds on October 1, 2021, maturing at the rate of $180,000 every 6 months starting April 1, 2022, and paying interest at the rate of 2 percent per annum on the unpaid balance. Use the above information to calculate the following: a) Interest expenditure reported in the governmental fund statement of revenues, expenditures, and changes in fund balance $ B) Interest expense reported in the government-wide statement of activities Account $ To record adjustment for 2021 activity. 2021 To record adjustment for 2022 activity. Check $ c) Prepare the journal entries needed to adjust the fund statements so government-wide statements can be prepared. LA If no entry is necessary, select 'No debit (or credit) entry needed' in the account fields and enter 0 in the amount fields. Debit $ 2022 Credit
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