Question
Please help with the following exercise related to Governmental Accounting: On October 1, 2018, North County School District issued $20 million of 6 percent bonds
Please help with the following exercise related to Governmental Accounting:
On October 1, 2018, North County School District issued $20 million of 6 percent
bonds at par to construct a new high school.The first interest payment of $600,000
is due on March 31, 2019.In December 2018, the district transferred $600,000 from
its General Fund to a Debt Service Fund to cover the March 2019 interest payment.
The district's Chief Fiscal Officer wants you to calculate how much interest
expense/expenditure the district should recognize for 2018 in its......
1. General Fund?____________
2. Debt Service Fund?____________
3. Government-Wide Statements?_____________
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