Author Question: A city with a fiscal year end of December 31 has a Debt Service Fund. Debt service payments are made ... (Read 122 times)

Chelseaamend · **on:** Jul 6, 2018

A city with a fiscal year end of December 31 has a Debt Service Fund. Debt service payments are made every six months on January 15 and on July 15 .

If the financial resources for the debt service payment of 15,000 (10,000 principal, 5,000 interest) due the following January 15 are transferred to the Debt Service Fund on December 30, what amount of expenditures must the Debt Service Fund recognize on December 31?
a. 0
b. 5,000
c. 15,000
d. Either 0 or 5,000
e. Either 0 or 15,000

Question 2

Assuming Net Sales is 180,000, Cost of Goods Sold is 79,000, Selling Expenses are 28,500, and General Expenses are 22,800, then Gross Profit is
a. 27,700.
b. 207,700.
c. 101,000.
d. 95,300.
e. 72,500.