1. The City of Ardvark, WY issued $500,000, 4.5 percent, bond anticipation notes on June 1, 2016, due in four months when the City will be issuing $15,000,000 in general obligation bonds. The proceeds of that October 1 bond issue will extinguish the bond anticipation notes. The entry to record the issuance of the bond anticipation notes in the Capital Projects Fund requires:

A. A credit to Bond Anticipation Notes Payable, $500,000. B. A credit to Other Financing SourcesProceeds of BAN, $500,000.

C. A debit to Cash, $15,000,000. D. A credit to Other Financing UsesProceeds of BAN, $500,000.

2. The City of Ardvark, WY issued $500,000, 4.5 percent, bond anticipation notes on June 1, 2016, due in four months when the City will be issuing $15,000,000 in general obligation bonds. The proceeds of that October 1 bond issue will extinguish the bond anticipation notes. The journal entry to record the repayment of the bond anticipation note at the Governmental Activities journal (government-wide level), after the October bond is issued, requires:

A. A debit to Cash, $507,500. B. A debit to ExpendituresInterest on BAN, $7,500. C. A debit to Bond Anticipation Notes Payable, $500,000.

D. A debit to Bond Anticipation Notes Payable, $507,500.

3. Proceeds from general obligation bonds for capital construction should generally be recorded in the

A. Enterprise fund. B. General Fund. C. Capital projects funds.

D. Debt service funds.

4.

The city of Superior's fiscal year ends on December 31. On July 1, 2016 Superior issues $1,000,000 of 8%, 10-year term bonds with semi-annual interest payments due on July 1 and January 1 each year. The General Fund transferred $100,000 to the debt service fund on July 1, 2016 to pay for interest to bondholders for the year. The debt service fund invests the money at an annual rate of 10%. What is the amount of total assets in the debt service fund at the end of 2016?

A. $65,000 B. $105,000

C. $965,000

D. $1,005,000

5. Debt service funds will typically not contain the following accounts:

A. Encumbrances.

B. Appropriations. C. Other Financing UsesInterfund Transfers In.

D. ExpendituresInterest.

6. The city of Covington, KY fiscal year ends on December 31. On July 1, 2016, the city issued $1,000,000 of 6%, 10-year term bonds with semi-annual interest payments due on July 1 and January 1 each year, beginning on January 1, 2017. What amount of expenditures should the city recognize in its debt service fund for the years 2016 and 2017?

A. $30,000 in 2016; $60,000 in 2017.

B. $60,000 in 2016; $60,000 in 2017.

C. $3,000 in 2016; $6,000 in 2017.

D. $0 in 2016; $60,000 in 2017.