Chapel Hill, North Carolina (population 57,000) issued $1,600,000, 20-year, 4 percent serial bonds on April 1, 2018 to finance construction of an addition to its city commerce center. The bonds pay interest each April 1 and October 1 of each year; in addition, bond principal of $80,000 is redeemed each October 1. The interest and principal payments are transferred from the General Fund to the Debt Service Fund one day prior to the interest payment dates (3/31 and 9/30). Chapel Hill follows a calendar year for this problem. Hint: Draw a line chart with interest and principal dates and calculate the 2018 activity and 2019 activity.

11. The adoption of the FY 2019 budget in the Debt Services Fund would include a: A. Debit to Estimated Revenues, $60,800. B. Credit to Appropriations, $140,800. C. Debit to Estimated Other Financing Sources, $60,800. D. Credit to Fund BalanceRestricted, $140,800.

12. The Debt Services Fund would record the receipt of the transfer of funds from the General Fund on March 31, 2019 (for the April 1, 2019 interest payment). The March 31 entry in the Debt Services Fund would include a: A. Credit to Other Financing SourcesTransfers-in, $32,000. B. Debit to Cash, $30,400. C. Credit to Revenues, $30,400. D. Debit to Cash, $32,000.

13. The April 1, 2019 entry to record the serial bond interest payment in the Debt Services Fund would include a: A. Credit to Cash, $30,400. B. Debit to ExpendituresInterest, $32,000. C. Debit to Interest Payable, $30,400. D. Credit to Cash, $15,200.

14. The April 1, 2019 entry to record the serial bond interest payment at the government-wide level would include a: A. Debit to ExpensesInterest on Long-term Debt, $15,200. B. Debit to Interest Payable, $30,400. C. Credit to Cash, $15,200. D. Credit to Cash, $32,000. 15. The Debt Services Fund would record the receipt of the transfer of funds from the General Fund on September 30, 2019 (for the October 1, 2019 interest + principal payment). The September 30 entry in the Debt Services Fund would include a: A. Debit to Cash, $90,400. B. Credit to Other Financing SourcesTransfers-in, $112,000. C. Debit to Expenditures2019, 112,000. D. Credit to Other Financing SourcesTransfers-in, $110,400.

16. The October 1, 2019 entry to record the serial bond interest and principal payment in the Debt Services Fund would include a: A. Credit to Cash, $108,800. B. Credit to Cash, $112,000. C. Debit to Bonds Payable, $80,000. D. Credit to Cash, $110,400.

17. The October 1, 2019 entry to record the serial bond interest and principal payment at the government-wide level would include a: A. Debit to Interest Payable, $30,400. B. Debit to ExpensesInterest on Long-term Debt, $28,800. C. Debit to ExpensesBonds Payable, $80,000. D. Debit to ExpensesInterest on Long-term Debt, $30,400.

18. The December 31, 2019 entry at the government-wide level to record the accrued interest would include a: A. Credit to Cash, $30,400. B. Debit to ExpensesInterest on Long-term Debt, $28,800. C. Debit to ExpensesInterest on Long-term Debt, $14,400. D. Credit to Interest Payable, $30,400.

19. On the City of Chapel Hill, NC Debt Services Fund, Statement of Revenues, Expenditures, and Changes in Fund Balances for the year ended, December 31, 2019, the following would be reported: A. ExpendituresInterest on Bonds, $59,200. B. Increase in Fund Balances, $0. C. ExpensesLong-term Interest on Bonds, $60,800. D. Revenues, $140,800.

20. Assume the bond in this fact pattern was a term bond. Using the same interest payment dates of April 1 and October 1, what is the total amount of interest expenditure that would be reported on the Statement of Revenues, Expenditures, and Changes in Fund Balances for the year ended, December 31, 2019? A. $64,000. B. $45,600. C. $48,000. D. $32,000.