Author Question: Cash withdrawals by owners decrease assets and increase equity. a. True b. False Indicate ... (Read 79 times)

vHAUNG6011 · **on:** Jul 6, 2018

Cash withdrawals by owners decrease assets and increase equity.
a. True
b. False

Indicate whether the statement is true or false

Question 2

A government has 1,000,000 of 6, 10-year general obligation bonds outstanding. The bonds were issued on November 1, 20X7 to finance construction of a general capital asset. Interest is payable semiannually on November 1 and May 1 .

The bonds also require an annual principal payment of 100,000 on May 1 . What amount of debt service expenditures should the government report for the year ended December 31, 20X8?
a. 60,000
b. 90,000
c. 160,000
d. 190,000