A government entered into a capital lease agreement to acquire equipment for the general government on January 1, 2014. Five payments of $8,000 each are to be made, beginning on December 31, 2014. Discounting is at 6%, computed annually. The present value of the five payments is $33,699.
-Premiums generated from the issuance of bonds for a capital projects fund are generally:

Question

Quizplus · Accepted Answer

Premiums generated from the issuance of bonds for a capital projects fund are generally transferred to the debt service fund to help cover future interest payments or reduce the principal amount of the debt.

A Government Entered into a Capital Lease Agreement to Acquire