On October 31, 2020, the Village of Lexington issued $1,000,000 of 3% general obligation serial bonds. The bonds pay interest on April 30 and October 31. Starting on October 31, 2021, the first of 20 equal annual serial payments of $50,000 was made. For the year ended December 31, 2022, what is the amount that should be reported for “expenditures—matured interest” on the debt service fund’s statement of revenues, expenditures, and changes in fund balance? A. $27,750. B. $30,000. C. $27,000. D. $28,500.
On October 31, 2020, the Village of Lexington issued $1,000,000 of 3% general obligation serial bonds. The bonds pay interest on April 30 and October 31. Starting on October 31, 2021, the first of 20 equal annual serial payments of $50,000 was made. For the year ended December 31, 2022, what is the amount that should be reported for “expenditures—matured interest” on the debt service fund’s statement of revenues, expenditures, and changes in fund balance? A. $27,750. B. $30,000. C. $27,000. D. $28,500.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On October 31, 2020, the Village of Lexington issued $1,000,000 of 3% general obligation serial bonds. The bonds pay interest on April 30 and October 31. Starting on October 31, 2021, the first of 20 equal annual serial payments of $50,000 was made. For the year ended December 31, 2022, what is the amount that should be reported for “expenditures—matured interest” on the debt service fund’s statement of revenues, expenditures, and changes in fund balance?
A. $27,750.
B. $30,000.
C. $27,000.
D. $28,500.
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