During 2019, Kansas City issued bonds for financing the construction of a civic center and bonds for financing improvements in the environmental controls for its water and sewer enterprise. The latter bonds require a sinking fund for their retirement. Items (1) through (4) represent items Kansas City should report in its 2019 financial statements. Determine in which of the following funds and account groups [(a) through (f )] each item [(1) through (4)] would be included: a. General fund. b. Enterprise funds. c. Capital projects funds. d. Debt service funds. e. General fixed assets account group. f. General long-term debt account group. 1. Bonds payable. 2. Accumulated depreciation. 3. Amounts identified for the repayment of the two bond issues. 4. Fund balance—assigned for encumbrances.
During 2019, Kansas City issued bonds for financing the construction of a civic center and bonds for financing improvements in the environmental controls for its water and sewer enterprise. The latter bonds require a sinking fund for their retirement. Items (1) through (4) represent items Kansas City should report in its 2019 financial statements.
Determine in which of the following funds and account groups [(a) through (f )] each item [(1) through (4)] would be included:
a. General fund.
b. Enterprise funds.
c. Capital projects funds.
d. Debt service funds.
e. General fixed assets account group.
f. General long-term debt account group.
1. Bonds payable.
2.
3. Amounts identified for the repayment of the two bond issues.
4. Fund balance—assigned for encumbrances.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
