Problem P8-1 1-10. Thank you. 5. If the state used the proceeds to retire $10,000,000 of general long-term debt upon itsmaturity, the state should reporta. revenues of $10,000,000 and expenditures of $10,000,000.b. other financing sources of $10,000,000 and expenditures of $10,000,000.c. revenues of $10,000,000 and other financing uses of $10,000,000.d. other financing sources of $10,000,000 and other financing uses of $10,000,000.6. If the state placed the $10,000,000 in an irrevocable trust that is to be used to service anoutstanding $9,000,000 general obligation bond issue and those bonds are deemeddefeased in substance, the state should reporta. expenditures of $9,000,000 and other financing uses of $1,000,000.b. expenditures of $10,000,000.c. expenditures of $1,000,000 and other financing uses of $9,000,000.d. other financing uses of $10,000,000.e. no expenditures or other financing uses.7. If the state placed the $10,000,000 in an irrevocable trust as in item 6 but the transactiondid not meet the defeasance in substance criteria, the state should reporta. expenditures of $9,000,000 and other financing uses of $1,000,000.b. expenditures of $10,000,000.and c. expenditures of $1,000,000 and other financing uses of $9,000,000.d. other financing uses of $10,000,000.e. no expenditures or other financing uses.8. If the state placed $12,000,000 (the $10,000,000 from the advance refunding plus$2,000,000 from previously accumulated DSF resources) in the irrevocable trust in item 6and the debt was deemed defeased in substance, the state should reporta. expenditures of $9,000,000 and other financing uses of $3,000,000.b. expenditures of $3,000,000 and other financing uses of $9,000,000.c. expenditures of $2,000,000 and other financing uses of $10,000,000.d. expenditures of $12,000,000.SXOSe. other financing uses of $12,000,000.9. If the state of Exuberance defeased its $9,000,000 debt in substance as in item 8 exceptthat no advance refunding debt was issued, the state should reporta. expenditures of $9,000,000 and other financing uses of $3,000,000.b. expenditures of $3,000,000 and other financing uses of $9,000,000.c. expenditures of $2,000,000 and other financing uses of $10,000,000.d. expenditures of $12,000,000.900BYe. other financing uses of $12,000,000.10. A government paid $3,500,000 to its fiscal agent on June 30, 20X6, to provide for principal($2,000,000) and interest payments due on July 1, 20X6. The fiscal agent will make pay-ments to bondholders on July 1. The payment to the fiscal agent does not constitute legalor in-substance defeasance of the principal and interest payments. If the government usesthe option of accruing its principal and interest expenditures due early in the next year,which of the following assets and liabilities should be reported in the government's DSFbalance sheet at June 30, 20X6?a. No assets or liabilities from the preceding information would be reported because the10 on government has paid the fiscal agent.b. Cash with fiscal agent, $3,500,000.c. Cash with fiscal agent, $3,500,000.Matured bonds payable, $2,000,000.Matured interest payable, $1,500,000.d. Cash with fiscal agent, $3,500,000.Accrued interest payable, $1,500,000.10500 000 of 8% regular serial bonds at par P8-1 (Multiple Choice Problems and Computations) Identify the best answer for each of the00following.Questions 1 through 3 are based on the following scenario:The city of Lora issued $5,000,000 of general government, general obligation, 8%, 20-year bondsat 103 on April 1, 20X7, to finance a major general government capital project. Interest ispayable semiannually on each October 1 and April 1 during the term of the bonds. In addition,$250,000 of principal matures each April 1.1939 Cami1. If Lora's fiscal year-end is December 31, what amount of debt service expenditures shouldbe reported for this DSF for the 20X7 fiscal year?a. $0.b. $200,000.c. $300,000.d. $400,000.ni ms otni 000,1.000.000.0022. If Lora's fiscal year-end is March 31 and Lora accumulates dedicated resources in the DSFby fiscal year-end sufficient to pay the principal and interest due on April 1 of the subse-10 50quent fiscal year, what amount of debt service expenditures should Lora report for thefiscal year ended March 31, 20X8?gntwollola. $200,000.b. $400,000.nomon 000,000.2thetai bas (000,c. $650,000. di nod. $200,000 or $650,000, depending on the city's policy on accrual of debt service. Sortedbo3. Assume the same information as in item 1, except that Lora has not made the October 1,gain 20X7, interest payment as of the fiscal year-end. What amount of debt service expendi-tures should be reported for this DSF for the 20X7 fiscal year?novbra. $0.10l bojedabeanotsb ed of 918 abnod ani222 bisq viis IT Eb. $200,000.c. $300,000.dowsd. $400,000.att 000,00haloblloo dointaila doka4. A county had borrowed $18,000,000 to finance construction of a general government cap-ital project. The debt will be serviced from collections of a special assessment levy madefor the project. The county levied the special assessments in 20X8. Ten percent of theassessments are due in 20X8. The 20X8 and early 20X9 collections on the assessmentstotal $1,500,000. The amount of special assessments revenue that should be recognized inthe county's Special Assessments DSF for 20X8 isa. $0. Special assessments are reported as other financing sources.b. $1,500,000.c. $1,800,000.foorisbulthintei loodo2 inobasqobald. $18,000,000.nusibox.plounovAssume for Questions 5 through 9 that the state of Exuberance issued $10,000,000 of 5%,20-year refunding bonds in 20X5 at par.

Hi student Since there are multiple questions, we will answer only first question. Debt funds are a…

P8-1 (Multiple Choice Problems and Computations) Identify the best answer for each of the following. Questions 1 through 3 are based on the following scenario: 00 The city of Lora issued $5,000,000 of general government, general obligation, 8%, 20-year bonds at 103 on April 1, 20X7, to finance a major general government capital project. Interest is payable semiannually on each October 1 and April 1 during the term of the bonds. In addition, $250,000 of principal matures each April 1. 1. If Lora's fiscal year-end is December 31, what amount of debt service expenditures should be reported for this DSF for the 20X7 fiscal year? a. $0. b. $200,000. c. $300,000. d. $400,000. 2. If Lora's fiscal year-end is March 31 and Lora accumulates dedicated resources in the DSF by fiscal year-end sufficient to pay the principal and interest due on April 1 of the subse- quent fiscal year, what amount of debt service expenditures should Lora report for the fiscal year ended March 31, 20X8? a. $200,000. b. $400,000. 110 12915tni bas (000.0 c. $650,000. d. $200,000 or $650,000, depending on the city's policy on accrual of debt service. b 3. Assume the same information as in item 1, except that Lora has not made the October 1, g 20X7, interest payment as of the fiscal year-end. What amount of debt service expendi- tures should be reported for this DSF for the 20X7 fiscal year? novina. $0. b. $200,000. c. $300,000. bns Isqioning to Inomysq 101 boton los bastis d. $400,000. JL moil 000,00 beansish sd of one abood ani ni msomi 000,000,222 bisq pis of 1 $19.000.000 f 000,000 sqo19 boasdong lonlab loorba od haloolloo dointailabuta

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q