Question

non profit accouting

please help with all

The state of Exuberance issued $10,000,000 of 5%, 20-year refunding bonds in 20x5 at par. If the state used the proceeds to retire $10 million of general long-term debt upon its maturity, the state should report Select one: O a. revenues of $10,000,000 and expenditures of $10,000,000. O b. revenues of $10,000,000 and other financing uses of $10,000,000. O c. other financing sources of $10,000,000 and other financing uses of $10,000,000 Od other financing sources of $10,000,000 and expenditures of $10,000,000. The repayment of bond principal should be reported in the fund statements of a debt service fund as Select one: O a. An expenditure. O b. A direct charge to fund balance. O c. A reduction of bonds payable. O d. An "other financing use." A Debt Service Fund is generally used to accumulate resources for the payment of long-term Select one: o a. debt principal and interest. O b. debt interest only C. debt principal only. O d. leases

Answer 1

1.OTHER FINANCING SOURCES OF $ 10000000 AND EXPENDITURE OF $ 10000000 BECAUSE BONDS ARE ISSUED FOR FINANCIAL NEEDS.SO IT IS A SOURCES OF FINANCE AND BOND INTEREST OF 20 YEARS WILL BE 10000000

2.AN EXPENDITURE BECAUSE IT IS SHOWN ON THE INCOME STATMENT

3.DEBT PRINCIPAL AND INTEREST

AFTER THE MATURITY THE PRINCIPAL AND INTEREST WILL BE REPAID TO THE HOLDER