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  • Charter City Issued 100 Million of 6 Percent 20 Year General

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    Charter City issued $100 million of 6% general obligation bonds on January 1, 2017 that mature in 20 years. The bonds were issued at a discount of $2.27 million. Interest payments of $3 million each were made on July 1, 2017 and January 1, 2018. The city should report $6 million in interest expenditures in its debt service fund for 2017 and $6 million in interest expense on its government-wide statements, recognizing the amortization of the bond discount. When the bonds mature in 2037, the repayment would reduce liabilities on the fund statements and remove the remaining bond discount from the government-wide statements.

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    Charter City issued $100 million of 6% general obligation bonds on January 1, 2017 that mature in 20 years. The bonds were issued at a discount of $2.27 million. Interest payments of $3 million each were made on July 1, 2017 and January 1, 2018. The city should report $6 million in interest expenditures in its debt service fund for 2017 and $6 million in interest expense on its government-wide statements, recognizing the amortization of the bond discount. When the bonds mature in 2037, the repayment would reduce liabilities on the fund statements and remove the remaining bond discount from the government-wide statements.

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    9 views1 page

    Charter City Issued 100 Million of 6 Percent 20 Year General

    Uploaded by

    trilocksp Singh
    Charter City issued $100 million of 6% general obligation bonds on January 1, 2017 that mature in 20 years. The bonds were issued at a discount of $2.27 million. Interest payments of $3 million each were made on July 1, 2017 and January 1, 2018. The city should report $6 million in interest expenditures in its debt service fund for 2017 and $6 million in interest expense on its government-wide statements, recognizing the amortization of the bond discount. When the bonds mature in 2037, the repayment would reduce liabilities on the fund statements and remove the remaining bond discount from the government-wide statements.

    Copyright:

    © All Rights Reserved
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    Charter City issued 100 million of 6 percent 20 year general

    Charter City issued $100 million of 6 percent, 20?year general obligation bonds on January 1,
    2017. The bonds were sold to yield 6.2 percent and hence were issued at a discount of $2.27
    million (i.e., at a price of $97.73 million). Interest on the bonds is payable on July 1 and January
    1 of each year. On July 1, 2017, and January 1, 2018, the city made its required interest
    payments of $3 million each.1. How much interest expenditures should the city report in its debt
    service fund statement for its fiscal year ending December 31, 2017? During 2017, the city did
    not transfer resources to the debt service fund for the interest payment due on January 1,
    2018.2. How much interest expense should the city report on its government?wide statements
    for the year ending December 31, 2017? (It might be helpful to prepare appropriate journal
    entries.)3. On January 1, 2037, the city repaid the bonds. How would the repayment be
    reflected on the city's (1) fund statements and (2) government?wide statements?View Solution:
    Charter City issued 100 million of 6 percent 20 year general
    SOLUTION-- http://solutiondone.online/downloads/charter-city-issued-100-million-
    of-6-percent-20-year-general/

    Unlock answers here solutiondone.online

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