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services to Todd's other governmental units. During the year
ended December 31, 2005, Todd received a state grant to buy a
bus, and an additional grant for bus operation in 2005. In
2005, only 90% of the capital grant was used for the bus
purchase, but 100% of the operating grant was disbursed.
Todd has incurred the following long-term obligations:
General obligation bonds issued for the water and sewer fund
which will service the debt. Revenue bonds to be repaid from
admission fees collected from users of the municipal recreation
center. These bonds are expected to be paid from enterprise
funds, and secured by Todd's full faith, credit, and taxing
power as further assurance that the obligations will be paid.
Todd's 2005 expenditures from the general fund include
payments for structural alterations to a firehouse and
furniture for the mayor's office. In Todd's general fund
balance sheet presentation at December 31, 2005, which of the
following expenditures should be classified as fixed assets?
Question 11
On March 2, 2004, Finch City issued 10-year general
obligation bonds at face amount, with interest payable March 1
and September 1. The proceeds were to be used to finance the
construction of a civic center over the period April 1, 2004, to
March 31, 2005.During the fiscal year ended June 30, 2004, no
resources had been provided to the debt service fund for the
payment of principal and interest. On June 30, 2004, Finch's
debt service fund should include interest payable on the
general obligation bonds for
Question 12