A government issued 4 million of bonds on November 1, 2012, to build a fire house. The first debt service payment (200,000 principal plus 6 percent interest per annum on outstanding debt) was due November 1, 2013 .
To prepare government-wide financial statements at December 31, 2012, what journal entry is needed regarding the debt service due on November 1, 2013?
a. no journal entry is needed
b. Interest expense 40,000
Interest payable 40,000
c. Interest expense 40,000
Bond principal expense 33,333
Debt service payable 73,333
d. Interest expense 240,000
Interest payable 240,000
Question 2
An Accounts Receivable Customer Balances report shows
a. revenues by customer for a specified date range
b. customer balances owed as of a specific date
c. cash payments to creditors for a specific date range
d. sales by customer as of a specific date
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