Homework Help is Here – Start Your Trial Now!
Business
Accounting
On April 1, 2024, the City of Southern Ponds Issued $5,000,000 in 4% general obligation, tax supported bonds at 101 for the purpose of constructing a new police station. The premium was transferred to a debt service fund. A total of $4,990,000 was used to construct the police station, which was completed before December 31, 2024, the end of the fiscal year. The remaining funds were transferred to the debt service fund. The bonds were dated April 1, 2024, and paid interest on October 1 and April 1. The first of 20 equal annual principal payments of $250,000 is due April 1, 2025. What amount would be reported as debt service expenditures for the year ended December 31, 2025? Multiple Choice $450,000. $345,000. О $445,000. $350,000.

On April 1, 2024, the City of Southern Ponds Issued $5,000,000 in 4% general obligation, tax supported bonds at 101 for the purpose of constructing a new police station. The premium was transferred to a debt service fund. A total of $4,990,000 was used to construct the police station, which was completed before December 31, 2024, the end of the fiscal year. The remaining funds were transferred to the debt service fund. The bonds were dated April 1, 2024, and paid interest on October 1 and April 1. The first of 20 equal annual principal payments of $250,000 is due April 1, 2025. What amount would be reported as debt service expenditures for the year ended December 31, 2025? Multiple Choice $450,000. $345,000. О $445,000. $350,000.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
None
On April 1, 2024, the City of Southern Ponds Issued $5,000,000 in 4% general obligation, tax supported bonds at 101 for the purpose of constructing a new police station. The premium was transferred to a debt service fund. A total of $4,990,000 was used to construct the police station, which was completed before December 31, 2024, the end of the fiscal year. The remaining funds were transferred to the debt service fund. The bonds were dated April 1, 2024, and paid interest on October 1 and April 1. The first of 20 equal annual principal payments of $250,000 is due April 1, 2025. What amount would be reported as debt service expenditures for the year ended December 31, 2025? Multiple Choice ○ $450,000. $345,000. $445,000. О $350,000.
Transcribed Image Text:On April 1, 2024, the City of Southern Ponds Issued $5,000,000 in 4% general obligation, tax supported bonds at 101 for the purpose of constructing a new police station. The premium was transferred to a debt service fund. A total of $4,990,000 was used to construct the police station, which was completed before December 31, 2024, the end of the fiscal year. The remaining funds were transferred to the debt service fund. The bonds were dated April 1, 2024, and paid interest on October 1 and April 1. The first of 20 equal annual principal payments of $250,000 is due April 1, 2025. What amount would be reported as debt service expenditures for the year ended December 31, 2025? Multiple Choice ○ $450,000. $345,000. $445,000. О $350,000.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Property Taxes
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS