A state had general obligation bonds out standing that required payment of

A state had general obligation bonds out standing

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46. A state had general obligation bonds out-standing that required payment of interest on July 1 and January 1 of each year. State law allowed for the general fund to make debt payments without the use of a fiscal agent. The fiscal year ended June 30. Which of the following accounts would have decreased when the state paid the interest due on July 1? a. Interest expenditures b. Interest payable c. Interest expense d. Fund balance (R/08, FAR, A0034G, #46, 8601) 47. On March 1, Wag City issued $1,000,000, ten-year, 6% general obligation bonds at par with no bond issue costs. The bonds pay interest September 1 and March 1. What amount of interest expense and bond interest payable should Wag report in its government-wide financial statements at the close of the fiscal year on December 31?
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Financial Accounting & Reporting Updating Supplement Version 38.3 Copyright © 2009 by Bisk Education, Inc. All rights reserved. Page 126 of 160 Bond Issue PriceSituationInterest ExpenseBalance SheetBond Issue PriceSituationInterest ExpenseBalance Sheet 48. All of the following statements regarding notes to the basic financial statements of governmental entities are true except 49. How should unconditional pledges received by a nongovernmental not-for-profit organization that will be collected over more than one year be reported? 50. How should a nongovernmental, not-for-profit organization report donor-restricted cash contributions for long-term purposes in its statement of cash flows? a. Operating activity inflow b. Investing activity inflow c. Financing activity inflow d. As a noncash transaction (R/08, FAR, A0158N, #50, 8605) __________________ Problem 3SIMULATION (30 to 45 minutes) On January 2, 2003, the Lyndhurst Company, Inc. a privately-held company, issued $1,000,000, five- year, 10.00% bonds, dated January 2, 2003. The bonds provided for semi-annual interest payments to be made on June 30 and December 31 of each year. Terms of the bond indenture allowed the companyto call the bonds at 102 after one year. The bonds were issued when the market interest rate was 8.00%.
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