Which of the following statements is TRUE regarding municipal bonds? a. Interest from amunicipal bond will be reported on Form 1099 - INT, box1 b. Interest income from municipalbonds is taxable on the taxpayer's federal return. c. Municipal bonds are generally issued bystate and local governments to fund capital improvement projects. d. Municipal bond interestis not taxable at the state or federal level.

a) Generally municipal bonds are exempt from tax. In the case of tax exempt municipal bonds, you may…

Answered: Which of the following statements is…

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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6 The liability for special assessment bonds that carry a secondary pledge of a city's general credit should be reported in the balance sheet(s) of: Multiple Choice A debt service fund. A custodial fund. The governmental activities accounts. A custodial fund and disclosed in the notes to the financial statements.
True or false: Government can issue both stocks and bonds to finance government expenditures
In recording its property tax assessment for the year, a county government estimates the amount of uncollectible taxes. How is this estimate reflected in the financial statements: An expenditure under General Government Operations. A credit to Taxes Receivable. A reduction in Property Tax Revenue. A debit to Estimated Uncollectible Taxes.
Tuston Township issued the following bonds during the year ended June 30, Year 1: Bonds issued for the garbage collection enterprise fund that will service the debt $700,000 Revenue bonds to be repaid from admission fees collected by the Township zoo enterprise fund 500,000 What amount of these bonds should be accounted for in Tuston's government-wide financial statement as a liability resulting from governmental activities? A.) $1,200,000 B.) $700,000 C.) $500,000 D.) $0
The citizens of a geographic area of the National City authorized a special assessment to be imposed on their properties to finance the reconstruction of the infrastructure of the sewerage system that serves the area. The city will solicit bids, oversee the reconstruction, issue the debt in the city's name, and pay the debt. The city is not bound in any way by the debt, but will collect special assessments and make principal and interest payments to bondholders. 1. Explain the use and purpose of the Capital Projects Fund for the National City construction project.
“The debt of government-owned corporation is guaranteed by the full faith and credit of the U.S. government, but that is not the case for the debt of government-sponsored enterprises”. This statement is: A. True B. False C. Could be True
5. 2. The City of Paradise issued Bonds of $1,250,000 for the Construction of a City Hall. The City Hall’s bonds are sold at a premium of $150,000; therefore the estimated cost of the Hall is $1,100,000. Required: a. Prepare general journal entries to record the issue of the bonds by General Fund. b. Prepare general journal entries to transfer the premium amount to the debt service fund.
For the following event, prepare journal entries under a governmental fund (using modified accrual), necessary worksheet entries, and government-wide financial statements (using accrual basis of accounting). At year end, additional general obligation bonds were issued at 102 with a face value of $1,000,000. J/E under Modified Accrual Account Debited [Select) Worksheet Entries Account Debited [Select] [Select] Account Credited [Select] [Select] Account Credited [Select [Select] Amount Debited [Select] Amount Debited 1.000.000 [Select) Amount Credited 1,000,000 [Select] Amount Credited 1.000.000 [Select]
Property owners in the City of N e pay property taxes that are earmarked, in part, to provide debt service for the outstanding debt of the city. Property owners in the city also provide debt service support for a share of the outstanding debt of Center Township and Delaware County, proportionate to the ratio of the assessed valuation of property located within the city to that of all taxable property in the township and the county. The sum of the city's outstanding debt plus a proportionate share of the township and county's debt is referred to as: a. Total direct debt. b. Overlapping debt. c. Legal debt margin. d. Total general obligation debt outstanding. (ne)s
I need the journal entry for these questions As of January 1, 2020, the City of Monroe had $12,000,000 in general obligation bonds outstanding. Eliminate the expenditures for bond principal. Adjust for the interest accrued in the prior year government-wide statements, but recorded as an expenditure in the 2020 fund basis statements, ($12,000,000 × 0.03 × 6/12) = $180,000.
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