The City of Bamberg, which has a fiscal year end of December 31, issued a nine-month $1,000,000 bond anticipation note on July 1. The city is planning to renew or re-issue the bond anticipation notes for another six-month period when they mature. What would the Capital Projects Fund liability for the note be on December 31?

Question

Quizplus · Accepted Answer

The Capital Projects Fund liability for the note on December 31 would be $1,000,000 because the note is still outstanding at the end of the fiscal year, and the full amount of the note is the liability.

The City of Bamberg, Which Has a Fiscal Year End