|Posted: 26 Feb 2010 at 20:06 | IP Logged
Government wide financial statement is full accrual, right? Which should be the same as for profit organization. I dont understand why this question calculated in modified accrual approach as in debt service fund. Please help, thank you.
The correct answer is D....
On March 1, Wag City issued 1,000,000, ten year, 6% general obligation bonds at par with no bond issue costs. The bond 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 end on December 31?
a. interest expense 50000, interest payable, 20,000
b. interest expense 50000, interest payable 0
c. interest expense 60000, interest payable 10000
d. interest expense 30000, interest payable 0
REG-Finished Good 92
BEC-Finished Good 90
AUD-Finished Good 84
FAR-Finished Good 91