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Excel City has $1,000,000 of 8%, 10 year general obligation bonds outstanding. The bonds were issued on October 1, 20x8 to finance construction of city
Excel City has $1,000,000 of 8%, 10 year general obligation bonds outstanding. The bonds were issued on October 1, 20x8 to finance construction of city park improvements. Interest is payable semiannually on October 1 and April 1. The bonds also require an annual principal payment of $100,000 each April 1. What amount of debt service expenditures should the government report in its Debt Service Fund for the year ended December 31, 20x9?
The answer is $176,000.
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