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Author Question: A government issued 4 million of bonds on November 1, 2012, to build a fire house. The first debt ... (Read 98 times)

fagboi

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on: Jul 5, 2018
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


matt

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Reply #1 on: Jul 5, 2018
Answer to Question 1

b

Answer to Question 2

b


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