Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A county government borrows $1,500,000 from a local bank at the beginning of 2019, to fund general operations. Principal and $90,000 in interest ($45,000 per

A county government borrows $1,500,000 from a local bank at the beginning of 2019, to fund general operations. Principal and $90,000 in interest ($45,000 per year) are both due two years later when the loan is repaid at the end of 2020. The loan is reported in the general fund.

Which statement below istrueconcerning the general fund?

A.Fund balance decreases by $1,590,000 in 2020.

B.Fund balance is not affected in 2019.

C.Fund balance decreases by $1,500,000 in 2020.

D.Fund balance is reduced by $45,000 in 2019.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Debra C Jeter, Paul K Chaney

5th Edition

1118022297, 978-1118022290

More Books

Students also viewed these Accounting questions

Question

What does it mean when ????2 is 10% more than ????2?????????????

Answered: 1 week ago