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4. Assume that on March 1, 2020. a 20-year, 3%, general obligation serial bond was issued at a face amount of $3,000,000. Interest of 4%

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4. Assume that on March 1, 2020. a 20-year, 3%, general obligation serial bond was issued at a face amount of $3,000,000. Interest of 4% per annum is due semiannually on April 1 and October 1 each year. The first payment of principal is due on April 1, 2021. The fiscal year (assume a calendar year) ends on December 31. On the Government Activities (GA) books, the total interest expense recorded on these bonds for 2020 will be $90,000. 5. Given the information in # 4 above, the total interest expenditure on the books of the DSF for 2020 will be $90,000. 6. GASB requires that the Cash Flow Statement prepared for Proprietary Funds will record the acquisition of Capital Assets as Capital and Related Financing Activity 7. An example of an internal service fund would be a print shop run within the goverment to serve the government. 8. An internal service fund is a proprietary fund. Nevertheless, it is usually consolidated under GA on the Government Wide statements 9 A fund established to provide for public parks, and one where both the principal and interest can be expended, is known as a Special Revenue Fund, 10. One of the three categories of'net position is Net Investment in Capital Assets (NICA). The formula for calculating this category is NICA-Investments in Capital Assets plus Accumulated Depreciation minus Liability associated with the acquisition of capital aset 4. Assume that on March 1, 2020. a 20-year, 3%, general obligation serial bond was issued at a face amount of $3,000,000. Interest of 4% per annum is due semiannually on April 1 and October 1 each year. The first payment of principal is due on April 1, 2021. The fiscal year (assume a calendar year) ends on December 31. On the Government Activities (GA) books, the total interest expense recorded on these bonds for 2020 will be $90,000. 5. Given the information in # 4 above, the total interest expenditure on the books of the DSF for 2020 will be $90,000. 6. GASB requires that the Cash Flow Statement prepared for Proprietary Funds will record the acquisition of Capital Assets as Capital and Related Financing Activity 7. An example of an internal service fund would be a print shop run within the goverment to serve the government. 8. An internal service fund is a proprietary fund. Nevertheless, it is usually consolidated under GA on the Government Wide statements 9 A fund established to provide for public parks, and one where both the principal and interest can be expended, is known as a Special Revenue Fund, 10. One of the three categories of'net position is Net Investment in Capital Assets (NICA). The formula for calculating this category is NICA-Investments in Capital Assets plus Accumulated Depreciation minus Liability associated with the acquisition of capital aset

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