Question
The City of Fremont's fiscal year ends June 30. The city issued the following general obligation bonds: On July 1, 2014, the city issued 7%
The City of Fremont's fiscal year ends June 30. The city issued the following general obligation bonds:
On July 1, 2014, the city issued 7% $500,000 face value, 10-year bonds for $466,350 to yield 8%. Interest is payable on June 30 of each year.
On January 1, 2016, the city issued 7% $500,000 face value, 10-year bonds for $577,270 to yield 5%. Interest is payable on December 31 of each year.
a. Determine the amounts reported in the government-wide statement of activities and statement of net position for fiscal year 2017, related to the bonds.
HINT: Use the effective interest method and assume the total annual interest expense reported for the second bond is split equally between the two fiscal years. Round answers to the nearest dollar.
2017 Statement of Activities
Interest Expense __________
6/30/2017 Statement of Net Position
Interest Payable ___________
Bonds Payable ____________
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