Trapper City issued 30-year bonds for the purpose of building a new City Hall. The proceeds of the bonds are deposited in the General Fund. For the governmental fund financial statements, in what fund will Bonds Payable appear?
A) General Fund.
B) Internal service fund.
C) Permanent Fund.
D) Debt Service Fund.
E) Bonds Payable do not appear in governmental fund financial statements.

Question

Quizplus · Accepted Answer

In governmental fund financial statements, long-term liabilities like Bonds Payable are not reported. Instead, they are reported in the government-wide financial statements.

Trapper City Issued 30-Year Bonds for the Purpose of Building