A) on January 1, a school district issued $40 million in general obligation bonds to finance the construction of a new junior high school. The bonds were to mature in 20 years (40 periods) and had a coupon rate of 4 percent per year (2 percent per semiannual period). They were sold for $38,924,728 (a discount of $1,075,272), a price that reflected an annual yield of 4.2 percent (2.1 percent per period).

Prepare entries to reflect the bond issue and the first 2 interest payments in the government wide statements.

Prepare entries to reflect the bond issue and the first 2 interest payments in the government funds.

What is the net liability that would appear in the government wide financial statements after the 2^ndpayment?

b) on January 1, a city issued a 5-year 9% $100,000 bond (4.5% per period) that yields 8% (4% per period) for $104,100.

Prepare entries to reflect the bond issue and the first 2 interest payments in the government wide statements.

Prepare entries to reflect the bond issue and the first 2 interest payments in the government funds.

What is the net liability that would appear in the government wide financial statements after the 2^ndpayment?