Question
Mike village sold $1,000,000 of general obligation bonds on October 1,2018, maturing at the rate of 100000 every 6 months starting April 1,2019, and paying
Mike village sold $1,000,000 of general obligation bonds on October 1,2018, maturing at the rate of 100000 every 6 months starting April 1,2019, and paying interest at the rate of 5 percent per annum on the unpaid balance.
(A) Compute the interest expenditure Mike will report in its governmental fund statement of revenues, expenditures, and changes in fund balances for the calendar year ended December 31, 2018.
(B) Compute the interest expenditure Mike will report in its governmental fund statement of revenues, expenditures, and changes in fund balances for the calendar year ended December 31, 2019.
(C) Compute the interest expense Mike will report in its government-wide statement of activities for the calendar year ended December 31, 2018.
(D) Compute the interest expense Mike will report in its government-wide statement of activities for the calendar year ended December 31, 2019.
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