Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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Question
Chapter 16, Problem 23P
To determine
Identify the appropriate answer for the given statement from the given choices.
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Craven City borrows $1,000,000 in bonds payable on January 1, 2022, and the
bonds are scheduled to be repaid over 10 years, with the first payment scheduled for
December 31, 2022. The bonds have a stated interest rate of 4%, and interest is
payable annually with the first interest payment scheduled for December 31, 2022.
Assuming the debt is repaid from a debt service fund (because the bond proceeds
were used to benefit the governmental funds), what amount of expenditures would
be recognized in the debt service fund for 2022? What amount of expense would be
recognized if the bonds were repaid in an enterprise fund (because the bond
proceeds were used to benefit the enterprise fund)?
O $40,000 expenditures in the debt service fund; $40,000 expense in the
enterprise fund
O $140,000 expenditures in the debt service fund; $40,000 expense in the
enterprise fund
O $140,000 expenditures in the debt service fund; $140,000 expense in the
enterprise fund
$40,000 expenditures in the debt service…
Craven City borrows $2,000,000 in bonds payable on January 1, 2022, and the
bonds are scheduled to be repaid over 10 years, with the first payment scheduled for
December 31, 2022. The bonds have a stated interest rate of 5%, and interest is
payable annually with the first interest payment scheduled for December 31, 2022.
Assuming the debt is repaid from a debt service fund (because the bond proceeds
were used to benefit the governmental funds), what amount of expenditures would
be recognized in the debt service fund for 2022? What amount of expense would be
recognized if the bonds were repaid in an enterprise fund (because the bond
proceeds were used to benefit the enterprise fund)?
A city borrows $ 1 million, paying semi-annual interest at j2 = 9%. The city creates a sinking fund in which semi-annual deposits of $37360.93 are made in order to accumulate the $ 1 million needed to repay the loan upon maturity. The sinking fund earns j2 = 8%.What is the book value of the debt at the end of the 5 years?
Chapter 16 Solutions
Advanced Accounting
Ch. 16 - Prob. 1QCh. 16 - Prob. 2QCh. 16 - Prob. 3QCh. 16 - Prob. 4QCh. 16 - What measurement focus is used in fund financial...Ch. 16 - Prob. 6QCh. 16 - Prob. 7QCh. 16 - In applying the current financial resources...Ch. 16 - Prob. 9QCh. 16 - What are the five fund types within the...
Ch. 16 - Prob. 11QCh. 16 - What are the four fund types within the fiduciary...Ch. 16 - Prob. 13QCh. 16 - Fund financial statements have separate columns...Ch. 16 - The general fund of a city reports assets of...Ch. 16 - Why are budgetary entries recorded in the...Ch. 16 - How are budget results shown in the financial...Ch. 16 - Prob. 18QCh. 16 - Prob. 19QCh. 16 - Prob. 20QCh. 16 - How do governmental funds report capital outlay in...Ch. 16 - Prob. 22QCh. 16 - Prob. 23QCh. 16 - Prob. 24QCh. 16 - How is the issuance of a long-term bond reported...Ch. 16 - Prob. 26QCh. 16 - Prob. 27QCh. 16 - Prob. 28QCh. 16 - What is an internal exchange transaction, and how...Ch. 16 - Prob. 1PCh. 16 - Prob. 2PCh. 16 - Prob. 3PCh. 16 - Prob. 4PCh. 16 - Prob. 5PCh. 16 - Prob. 6PCh. 16 - Which of the following statements is correct about...Ch. 16 - Prob. 8PCh. 16 - Prob. 9PCh. 16 - The City of Bagranoff holds 90,000 in cash that...Ch. 16 - Prob. 11PCh. 16 - The general fund pays rent for two months. Which...Ch. 16 - A purchase order for 3,000 is recorded in the...Ch. 16 - At the end of the current year, a government...Ch. 16 - A government buys equipment for its police...Ch. 16 - A city acquires supplies for its fire department...Ch. 16 - Prob. 17PCh. 16 - The state government passes a law requiring...Ch. 16 - The state awards a grant of 50,000 to the Town of...Ch. 16 - A city issues a 60-day tax anticipation note to...Ch. 16 - A city issues five-year bonds payable to finance...Ch. 16 - The City of Dylan issues a 10-year bond payable of...Ch. 16 - Prob. 23PCh. 16 - A 110,000 payment is made on a long-term...Ch. 16 - A city constructs a special assessment project (a...Ch. 16 - A city constructs curbing in a new neighborhood...Ch. 16 - Which of the following is an example of an...Ch. 16 - The governmental funds of the City of Westchester...Ch. 16 - Government officials of Hampstead County ordered a...Ch. 16 - A local government has the following transactions...Ch. 16 - Prepare journal entries for the City of Puddings...Ch. 16 - Prepare journal entries for a local government to...Ch. 16 - The following unadjusted trial balances are for...
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