Government debts may be reported differently in governmental and governmentwide statements.

The Alpine school district engaged in the following transactions in its fiscal year ending August 31, 2021. By law, the district is required to establish a capital projects fund to account for school construction projects and a debt service fund to account for resources legally restricted to the payment of longterm principal and related interest.

• On March 1, it 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).
• On August 31 the district made its first interest payment of $800,000.
• During the year the builder with whom the district contracted to construct the building completed approximately 10 percent of the building and billed the district for $4 million.
• On August 31, the district issued $10 million in bond anticipation notes to finance improvements to its athletic facilities. By the time the district issued its fiscal yearend 2021 financial statements in December 2021, it still had not refinanced these notes and had not yet started construction on the facilities.
• In June the district issued $2 million in tax anticipation notes. It repaid these notes in September. Interest applicable to the notes for the fiscal year ending August 31, 2021, was $25,000, all of which was paid in September when the notes matured.
• In August, the district settled a lawsuit with a group of former teachers. Per a structured settlement, the district agreed to make several payments totaling $1,600,000 to the teachers. The district has a policy of recording longterm obligations at present value whenever required or permitted by GAAP. It estimates the present value of this settlement to be $1,350,000.

What amount relating to these transactions should the district report in its August 31, 2021, financial statements as:

1. Interest expenditure in its debt service fund statement of revenues and expenditures?
2. Interest expense in its governmentwide statement of activities?
3. Longterm debt in the capital projects fund balance sheet?
4. Current debt in the capital projects fund balance sheet?
5. Longterm debt in the debt service fund balance sheet?
6. Bonds payable (net of bond discount) in the governmentwide statement of net position?
7. Other noncurrent debt in the governmentwide statement of net position?
8. Invested in capital assets, in the governmentwide statement of net position?
9. Current liabilities in the generalfund balance sheet?

Select each response from one of the amounts that follow. An amount may be selected once, more than once, or not at all.

1. $(34,942,147)
2. $0
3. $25,000
4. $800,000
5. $817,419
6. $842,419
7. $1,350,000
8. $1,600,000
9. $2,000,000
10. $2,025,000
11. $10,000,000
12. $12,000,000
13. $12,025,000
14. $38,924,728
15. $38,942,147

EX. 8-4

Both the reported value of longterm debt and periodic interest charges should be based on unamortized issue price (plus or minus unamortized premiums or discounts) and initial yield.

The City of Fairfield issued $100 million of 20year, 6 percent coupon bonds (3 percent per semiannual period) for $89.32 million. The price reflected a yield of 7 percent (3.5 percent period semiannual period).

1. Prepare entries to reflect how the following would be reported in the city's governmentwide statements:
2. The issuance of the bond
3. The first semiannual payment of interest
4. The second semiannual payment of interest
5. Prepare entries to account for the same transactions in an appropriate governmental fund.