on October 1 2014, the Cry Of Miner issued S4,000,000 in 4% e eral obi anon bond

Question

on October 1 2014, the Cry Of Miner issued S4,000,000 in 4% e eral obi anon bond, atl01 for the purpose of co sneing a ato nechme neme um mm fred e det service fund. A total of $3,975,000 was used to construct the addition, which was complieted prior to June 30, 2015. The remaining funds were transferred to the debt service fund. The bonds were dated October 1 2014, and paid in terest on Apr. 1 and October 1. The fry of 20 anual prcpal payme s osmo o s an oa bit aas m. hel yeah.imees Are 30 How would the govemment account for the unused bond proceeds? O As a revenue in the debr service fund and as an expenditure in the capital projects fund As another financing sonce ito capital projects fund and as aorer tnanong use the debt service had As another financing source in the govemment-wide Statement of Activities O As another financing source in the debt service fund and as another financing use in the capital projects fund

Explanation / Answer

Ans is D As another financing source in the debt service fund and as another financing use in the capital projects fund.

Explanation: Extra amount that remains unused and transferred to debt service fund can’t be treated as revenue in debt service and fund and expenditure for capital projects fund instead its another source of cash or use of cash for capital projects fund. Since fund is transferred from capital projects fund its not an source for capital projects fund. Its not a part of statement of activities.

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