Kent county buys a car through a lease agreement. $25,000 cash is paid when the lease agreement is signed. The PV of the subsequent lease payments is $845,500. The General Fund should record the car at:

Multiple Choice

• $845,500.

• $0.

• $870,500.

• $25,000.

The General Fund sends cash to the debt service fund to help make the payment of a bond principal ($100,000) and interest payment ($15,000). For the transaction of subsequent payment of the principal and interest,

Multiple Choice

• The debt service fund should debit Other Financing Uses.

• The general fund should debit Expenditures Bond Interest.

• The debt service fund should debit Expenditures Bond Interest.

• The governmental activities accounts should debit Interest Expenditures.

The California Franchise tax board, a custodial fund, is least likely to use__________ on its financial statements.

Multiple Choice

• Due to other governments.

• Taxes receivable for other funds.

• Cash.

Kent City's fiscal year ends on December 31. On 9/30/2020, the city issued $1,000,000 of 6%, 10-year term bonds with interest due on 3/31 and 9/31 each year, beginning on 3/31/2021. The debt service fund should record as expenditures of ____________for the years 2020 and 2021?

Multiple Choice

• $15,000 in 2020; $6,000 in 2021.

• $0 in 2020; $60,000 in 2021.

• $60,000 in 2020; $60,000 in 2021.

• $30,000 in 2020; $60,000 in 2021.