Answered

At Westonci.ca, we provide reliable answers to your questions from a community of experts. Start exploring today! Get detailed and accurate answers to your questions from a community of experts on our comprehensive Q&A platform. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.

The City of Lora issued $5,000,000 of general government, general obligation, 8%, 20-year bonds at 103 on April 1, 2017 20X7, to finance a major general government capital project. Interest is payable semiannually on each October 1 and April 1 during the term of the bonds. In addition, $250,000 of principal matures each April 1. If Lora's fiscal year-end is December 31, what amount of debt service expenditures should be reported for this DSF for the 20X7 fiscal year

Sagot :

Tundexi

Answer:

$200,000

Explanation:

The value of the government obligation = $5,00,000, 8%, 20 years bonds payable at 103

Interest expenses = $5,000,000 * 8/100 * 6/12 = $200,000.

Thus, $200,000 will be reported as debt service expenses in the fiscal year 20X7.

Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. Thank you for using Westonci.ca. Come back for more in-depth answers to all your queries.