Author Question: A Water Enterprise Fund (EF) issues 4 million of 5 revenue bonds on October 1, 2013 . The EF will ... (Read 73 times)

jerry coleman · **on:** Jul 5, 2018

A Water Enterprise Fund (EF) issues 4 million of 5 revenue bonds on October 1, 2013 . The EF will make its first payment of interest on March 31, 2014, together with a principal payment of 200,000 .

What amount, if any, should the EF report in its fund statement of revenues, expenses, and changes in net position for the year ended December 31, 2013?
a. zero
b. interest expense of 100,000
c. interest expense of 50,000 and principal expense of 100,000
d. interest expense of 50,000

Question 2

Computerized accounting systems prevent all journalizing errors.
a. True
b. False

Indicate whether the statement is true or false