Question

On October 1, 2019, the City of Thomasville issued 55,000,000 in 4% general obligation bonds at 101 for the purpose of constructing an addition to City Hall. The premium was transferred to a debt service lund. A total of $4,968.750 was used to construct the addition, which was completed prior to June 30, 2020 The remaining funds were transferred to the debt service fund. The bonds were dated October 1, 2019, and paid interest on April 1 and October 1. The first of 20 annual principal payments of $250,000 is due October 1 2020. The fiscal year for Thomasville is July 1 - June 30. What amount would be reported as debt service expenditures in the year ended June 30, 2020 and 2021 Options B. 2020 $200,000 $200,000 $100,000 $100,000. 2021 $450,000 $445,000 $450,000 145,000 Multiple Choice o Option O One

Answer 1

October 1 2019		$5,000,000.00	Bonds Payable
		$50,000.00	Debt Service Fund
Prior to June 30		$4,968,750.00	Amount used for Construction
		$31,250.00	Amount Left & transferred to Debt Service Fund
On June 2020 Amount in
Debt Service Expenditure		$81,250.00	(31250+50000)
Interest Payment in April 1 2020		$100,000.00	(5000000*2%)
Debt Service Expenditure
for Year ended June 30,2020		$100,000.00
Interest Payment for the Year
2021		$200,000.00
Principal Repayment for the
Year 2021		$250,000.00
Debt Service Expenditure
for Year ended June 30,2020		$450,000.00
ANSWER	OPTION C	$100,000.00	$450,000.00
		2020	2021
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