A debt service fund of Clifton received $100,000 from its general fund during the fiscal year ended June 30, 20X9. The cash was used to pay matured interest on Clifton's general obligation bonds, which were issued to finance construction of a new municipal building. On the statement of revenues, expenditures, and changes in fund balance prepared for the debt service fund for the year ended June 30, 20X9, the amount received from the general fund should be reported as:_____________. A. revenue.
B. a reduction of expenditures.
C.another financing source.
D. matured interest payments.

Answers

Answer 1

Answer:

Answer: C. Another Financing source

Explanation:

The fund was received for the purpose of debt service. Debt service means repayment of loans. The funds were utilized for debt servicing. Hence, the amount should be reported as another financing source.

The objective of the funds was to repay loans and the amount was received for repayment. This amount was used to finance their debt service. So it was a financing source for the company.

Related Questions

15. Assume that Bullen issued 12,000 shares of common stock, with a $5 par value and a $47 fair value, to obtain all of Vicker's outstanding stock. In this acquisition transaction, how much goodwill should be recognized
Derek, a cash basis, unmarried taxpayer, had $1,580 of state income tax withheld during 2019. Also in 2019, Derek paid $158 that was due when he filed his 2018 state income tax return and made estimated payments of $3,160 towards his 2019 state income tax liability. When Derek files his 2019 Federal income tax return in April 2020, he elects to take the standard deduction, which reduced his taxable income. As a result of overpaying his 2019 state income tax, Derek receives a refund of $1,106 in 2020.How much of the $1,106 will Derek include in his 2020 gross income?
Consider the following abbreviated financial statements for Cabo Wabo, Inc.: CABO WABO, INC. Partial Balance Sheets as of December 31, 2018 and 2019 2018 2019 2018 2019 Assets Liabilities and Owners’ Equity Current assets $ 3,151 $ 3,367 Current liabilities $ 1,399 $ 2,078 Net fixed assets 14,060 14,511 Long-term debt 7,377 8,419 CABO WABO, INC. 2019 Income Statement Sales $ 45,000 Costs 22,522 Depreciation 3,885 Interest paid 995 a. What is owners’ equity for 2018 and 2019? (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) b. What is the change in net working capital for 2019? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) c-1. In 2019, the company purchased $8,038 in new fixed assets. The tax rate is 23 percent. How much in fixed assets did the company sell? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) c-2. What is the cash flow from assets for the year? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) d-1. During 2019, the company raised $2,479 in new long-term debt. What is the cash flow to creditors? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) d-2. How much long-term debt must the company have paid off during the year? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
High costs are associated with highunemployment. What economicphenomena is associated with highunemployment?A. Economic GrowthB. Economic StabilityC. Economic Depression
Macinski Leasing Company Leases a new machine to Sharrer Corporation. The machine has a cost of $70,000 and fair value of $95,000. Under the 3 year, non-cancelable contract, Sharrer will receive title to the machine at the end of the lease. The machine has a 3 year useful life and no residual value. The lease was signed on January 1, 2017. Macinski expects to earn an 8% return on its investment, and this implicit rate is known by Sharrer. The annual rentals are payable on each December 31, beginning December 31, 2017.a) Discuss the nature of the lease agreement and the accounting method that each party to the lease should applyb) Prepare amortization schedule suitable for both the lessor and lesseec) Prepare the journal entry at commencement of the lease for Macinskid) Prepare the journal entry at commencement of the lease for Sharrere) Prepare the journal entry at commencement of the lease for Sharrer, assuming (1) Sharrer does not know Macinski's implicit rate (Sharrer's incremental borrowing rate is 9%), and (2) Sharrer incurs initial direct costs of $10,000.

Trowel Corp. has outstanding accounts receivable totaling $13,000,000 as of December 31 and sales on credit during the year of $48,000,000. There is also a credit balance of $24,000 in the allowance for doubtful accounts. If the company estimates that 6% of its outstanding receivables will be uncollectible, what will be the amount of bad debt expense recognized for the year

Answers

Answer:

$756,000

Explanation:

Allowance for Bad Debts opening ($24,000)

Allowance for Bad Debts Closing $780,000

(13,000,000)*6%

Allowance Bad Debt Expense for the year $756,000

Which of the following is false about investing with borrowed money? (5 points)There is increased risk.

If you lose money, you will still have payments on it.

It is the best way to ensure you have retirement funds.

No investment is a sure deal

Answers

It is the best way to ensure you have retirement funds.

Retirement funds are generally a conservative investment and investing with borrowed money is seen as a risky activity because it requires payment, regardless of whether you earn additional money through investing or not. Because no investment is a sure deal, the investment process carries risk and the loan requires certain outflows in payments. Therefore, it is not often prudent to use this technique when investing for retirement.

If a corporation repurchases its debt, which of the following statements are TRUE? I The corporation's capitalization will increase
II The corporation's capitalization will decrease
III The market value of the common stock will increase
IV The market value of the common stock will decrease

Answers

Answer:

II and III

Explanation:

The best answer is ii and iii. If a corporation repurchases its debt, then its capitalization will decrease. Corporations repurchase debt to refinance at smaller interest rates so as to To increase the market value of the corporation's common stock. If corporation has less debt, the common stock would have more value and to reduce the corporation's earnings fluctuation's due to cyclical conditions. Corporate sales fall because of cyclical conditions, but fixed interest charges do not. This causes earnings for common shareholders to reduce in period of falling sales. To reduce this possibility, a corporation can repurchase its debt.

Bidder conferences are used to:(A) Answer questions about the project prior to submittal of proposals
(B) Answer questions about the project after contract award
(C) Debrief the bidder on their performance after completion of the contract
(D) Solicit pricing information from the bidders on proposed scope changes

Answers

Answer:

A. Answer questions about the project prior to submittal of proposals

Explanation:

A bidder conference is a meeting held by a buyer to discuss a possible purchase with multiple potential suppliers.

Final answer:

Bidder conferences are used to answer questions about the project prior to the submittal of proposals, ensuring a clear understanding of project requirements for all potential bidders.

Explanation:

Bidder conferences are a tool used in the procurement process of projects. The correct answer to what bidder conferences are used for is (A) Answer questions about the project prior to submittal of proposals. These conferences provide a forum for potential bidders to clarify any uncertainties regarding the project scope, specifications, and procurement process. The primary purpose of a bidder conference is to ensure that all potential bidders have a clear and common understanding of the project requirements, which helps them to prepare accurate and competitive proposals.

Learn more about Bidder Conferences here:

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Which of the following would you expect to decrease the demand for tennis racquets? A. A decrease in the price of tennis balls which are complements in consumption of tennis
B. An increase in the supply of tennis racquets
C. An increase in the price of tennis racquets
D. None of the above would decrease the demand for tennis racquets

Answers

Answer:

C) An increase in the price of tennis racquets

Explanation:

If tennis racquets become more expensive, the demand for them will decline, and people will try to supply this need with substitutes, for example, lacrosse raquets. The reason for this is that the classical supply and demand model tells us that demand and price are inversely correlated: if the price goes up, demand goes down, and viceversa.

Stark Company's most recent balance sheet reported total assets of $1.82 million, total liabilities of $0.84 million, and total equity of $0.98 million. Its Debt to equity ratio is:

Answers

Answer:

Debt to Equity Ratio = 0.86

Explanation:

Debt to Equity Ratio = Total Liabilities / Stockholder's Equity

Total Liabilities = $0.84 million

Stockholder's Equity = $0.98 million

Debt to Equity Ratio = $0.84 million / $0.98 million

Debt to Equity Ratio = 0.857143

Debt to Equity Ratio = 0.86

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On January 1, Merry Walker established a catering service. Listed below are accounts to use for transactions (a) through (f), each identified by a number. Following are the transactions that occurred in Walker's first month of operations. You need to indicate for each transaction the accounts that should be debited and credited by selecting the account number(s). 1. Cash 2. Accounts Receivable 3. Supplies 4. Prepaid Insurance 5. Equipment 6. Truck 7. Notes Payable 8. Accounts Payable 9. Merry Walker, Capital 10. Merry Walker, Drawing 11. Fees Earned 12. Wages Expense 13. Rent Expense 14. Utilities Expense 15. Truck Expense 16. Miscellaneous Expense 17. Insurance Expense

Consider this case: Last year, Jackson Tires reported net sales of $80 million and total operating costs (including depreciation) of $52 million. Jackson Tires has $115 million of investor-supplied capital, which has an after-tax cost of 7.5%. If Jackson Tire's tax rate is 40%, how much value did it's management create or lose for the firm during the year? A) 39.38 million B) 2.66 million C) 60.38 million D) 8.18 million

1. List names of all employees who are not from Department A00. 2. What is the average of all employee salaries? 3. Which employees earn more than average? 4. List names and salaries of employees earning more than $35,000. 5. Increase Ms. Haas's salary to $500,000 and then list her new monthly salary.

Define and explain SMART?