The City of Thumane had he owng dbf outstanding$2,900.000General obligation bonds to be paid from a debt service fund$3,100.000General obligation bonds to be paid trom utility revenuesRevenue bonds to be paid trom utility revenues$3,400,000The amount that shouid be shown as debt in the uhlity (enterprise) fund would be:Oa S6.500 00006 S3400.000Oc $3, 100.000Od $9,400,000hp

The obligations to be paid out of utility revenues are to be shown as debt in the utility…

Answered: ne utility (enterprise) fund w

Business

Accounting

ne utility (enterprise) fund w

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.

Question

The City of Thumane had he owng dbf outstanding
$2,900.000
General obligation bonds to be paid from a debt service fund
$3,100.000
General obligation bonds to be paid trom utility revenues
Revenue bonds to be paid trom utility revenues
$3,400,000
The amount that shouid be shown as debt in the uhlity (enterprise) fund would be:
Oa S6.500 000
06 S3400.000
Oc $3, 100.000
Od $9,400,000
hp

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