Question

USC WU TUNU U diswer the next Three questions: On October 1, 2016, the City of Mizner issued $5,000,0 101 for the purpose of constructing an addition to City Hal debt service fund. A total of $4.968.750 was used to construct prior to June 30, 2017. The remaining funds were tr were dated October 1, 2016, and paid interest on April principal payments of $250,000 is due October 1, 201 June 30. ef issued $5,000,000 in 4%. general obligation bonds at City Hall. The premium was transferred to a is used to construct the addition, which was completed funds were transferred to the debt service fund. The bonds erest on April 1 and October 1. The first of 20 annual October 1, 2017. The fiscal year for Mizner is July 1- 8. In addition to a $5,000,000 liability in the govern would the bond sale be reported? 00 liability in the government-wide Statement of Net Position, how 68,750 revenue in the capital projects fund and a $50,000 revenue in the debt service fund. B) As a $5,050,000 other financing source in the sing source in the capital projects fund, a $50,000 other and a $50,000 other financing source in the mojects fund, and a $50,00 financing use in the capital projects fund, and debt service fund. As a $5,000,000 other financing source in the capital projects fund, a $50,000 other financing source in the debt service fund, and as a $5,000,000 liability in the debt service fund. s fund, a $50,000 revenue in the debt D) As a $5,000,000 revenue in the capital projects fund, as service fund, and a $5,000,000 expenditure in the debt service fund. . How would the construction costs of $4,968,750 be reported at year-end? A) As a capital asset in the Statement of Net Position only. B) As an expenditure of the capital projects fund and an expense in the government-wide Statement of Activities. C) As an expenditure of the capital projects fund and a capital asset in the government wide Statement of Net Position. D) As an expenditure of the capital projects fund only. 10. What amount would be reported as debt service expenditures in the year ended June 30 2017? A) $250,000. B) $200,000 C) $450,000 D) $100,000.

Answer 1

8 Answer = option (6) Explanation. The capital projects fund will have_olher financing Sources of $ 5,60,000_and them framster the premises to the debt Degvice fund. The Capital projects fund will readed an other financing we Transfers out the debt service und will record otas financing sources - Transfers in di od Anywen oplion co Enpl: Construction costs would be recorded as an Expenditure of the capital projects -fund and a capital auct in the government wiele slodement of wet pohition 104 aesweit option Co) fexplanadian! p 5.000.000 xo'4X6 ) $100.000 ,9 Thement payment