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9 . Salvador County issued $ 2 5 million of 5 percent demand bonds for construction of a county maintenance building. The county has no
Salvador County issued $ million of percent demand bonds for construction of a county maintenance building. The county has no takeout agreement related to the debt. It estimates that percent of the bonds would be demanded called by the buyers if interest rates increased by at least one percentage point. At yearend, rates on comparable debt were percent. How should these demand bonds be reported in the governmental fund financial statements at yearend?
a $ million in the capital projects fund.
b $ million in the capital projects fund AND $ million would be reported in the schedule of changes in longterm obligations.
c $ million in the capital projects fund AND $ million would be reported in the schedule of changes in longterm obligations.
d $ million in the schedule of changes in longterm obligations.
Voters of Valdez School District, a public school district, approved construction of a new high school at a cost not to exceed $ million. The district will finance the construction by issuing $ million of percent term bonds payable in years. Because the site had already been prepared, the school district began construction immediately but the bonds would not be issued for nearly a year. Shortly before the fiscal yearend, the school district borrowed $ million from a local bank due in one year with interest at percent. The note will be repaid from bond proceeds. The school district secured a financing agreement with the bank to convert the debt to a year debt if the school district is unable to sell the bonds by the due date. At yearend, how should the $ million note be displayed in the governmental fund financial statements?
a Capital projects fundNotes payable $ million; Nothing in the schedule of changes in longterm obligations.
b Capital projects fundNotes payable $ million; $ million in the schedule of changes in longterm obligations.
c Capital projects fundEncumbrances of $ million; $ million in the schedule of changes in longterm obligations.
d Nothing in the capital projects fund AND $ million notes payable in the schedule of Changes in longterm obligations.
Dumas County has a December fiscal yearend. In November, the county borrowed $ million from a local bank, due in six months at percent interest, to finance general government operations. The county pledges property tax revenues to secure the loan. At yearend, how should the county display the bank note in the governmental fund financial statements?
a Nothing in the General Fund; Nothing in the schedule of changes in longterm obligations.
b General fund$ million in other financing sources; Nothing in the schedule of changes in longterm obligations.
c General fund$ million in other financing sources; $ million in the schedule of changes in longterm obligations.
d General fund$ million in notes payable; Nothing in the schedule of changes in longterm obligations.
GASB Statement No requires specifies which of the following
a Leases one year or more in length must be accounted for as a financing lease
b The lessee account for the lease as if it had purchased the rights to the asset and borrowed the purchase price.
c The treatment of leases of buildings, land and equipment, but excludes the treatment of intangible assets
d All of the above.
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