A city sells $15 million of general obligation bonds on October 1,2013.The bonds mature at the rate of $1 million a year each September 30,starting September 30,2014.The amount due September 30,2014 is paid.How much should the city report as outstanding debt in the Debt Service Fund in its year-end fund level financial statements on December 31,2014?

Question

Quizplus · Accepted Answer

The Debt Service Fund reports only the amount due and payable. Since the $1 million due on September 30, 2014, has been paid, there is no outstanding debt to report in the Debt Service Fund as of December 31, 2014.

A City Sells $15 Million of General Obligation Bonds on October