Question
The following is a series of transactions for Berkeley City. Indicate how Berkeley reports each transaction within the government-wide financial statements and then on the
The following is a series of transactions for Berkeley City. Indicate how Berkeley reports each transaction within the government-wide financial statements and then on the fund financial statements.Assume that Berkeley follows a policy of considering resources as available if they will be received within 60 days. Incurred Liabilities are assumed to be claims to current resources if they will be paid within 60 days.
1.Borrowed money by issuing a 20-year bond for $5 million, its face value.This money is to be used to construct a highway around Berkeley.
2.Transferred cash of $110,000 from the general fund to the debt service funds to make the first payment of principal and interest on the bond in (1).
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