Long-term debts: the government funds includes the general fund, record the proceeds from issue of bond as a debt. Bond issue proceeds are not revenue because the bonds must be repaid. Bonds are not reported as governmental funds but reported as governmental wide financial statement. To explain :the proceeds from bonds issue are accounted in governmental funds.

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Chapter 18, Problem 18.7Q

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Long-term debts: the government funds includes the general fund, record the proceeds from issue of bond as a debt. Bond issue proceeds are not revenue because the bonds must be repaid. Bonds are not reported as governmental funds but reported as governmental wide financial statement.

To explain:the proceeds from bonds issue are accounted in governmental funds.

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