Identify the appropriate answer for the given statement from the given choices.

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Craven City borrows $1,000,000 in bonds payable on January 1, 2022, and the bonds are scheduled to be repaid over 10 years, with the first payment scheduled for December 31, 2022. The bonds have a stated interest rate of 4%, and interest is payable annually with the first interest payment scheduled for December 31, 2022. Assuming the debt is repaid from a debt service fund (because the bond proceeds were used to benefit the governmental funds), what amount of expenditures would be recognized in the debt service fund for 2022? What amount of expense would be recognized if the bonds were repaid in an enterprise fund (because the bond proceeds were used to benefit the enterprise fund)? O $40,000 expenditures in the debt service fund; $40,000 expense in the enterprise fund O $140,000 expenditures in the debt service fund; $40,000 expense in the enterprise fund O $140,000 expenditures in the debt service fund; $140,000 expense in the enterprise fund $40,000 expenditures in the debt service…

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Chapter 16, Problem 23P

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Identify the appropriate answer for the given statement from the given choices.

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Craven City borrows $1,000,000 in bonds payable on January 1, 2022, and the bonds are scheduled to be repaid over 10 years, with the first payment scheduled for December 31, 2022. The bonds have a stated interest rate of 4%, and interest is payable annually with the first interest payment scheduled for December 31, 2022. Assuming the debt is repaid from a debt service fund (because the bond proceeds were used to benefit the governmental funds), what amount of expenditures would be recognized in the debt service fund for 2022? What amount of expense would be recognized if the bonds were repaid in an enterprise fund (because the bond proceeds were used to benefit the enterprise fund)? O $40,000 expenditures in the debt service fund; $40,000 expense in the enterprise fund O $140,000 expenditures in the debt service fund; $40,000 expense in the enterprise fund O $140,000 expenditures in the debt service fund; $140,000 expense in the enterprise fund $40,000 expenditures in the debt service…

Craven City borrows $2,000,000 in bonds payable on January 1, 2022, and the bonds are scheduled to be repaid over 10 years, with the first payment scheduled for December 31, 2022. The bonds have a stated interest rate of 5%, and interest is payable annually with the first interest payment scheduled for December 31, 2022. Assuming the debt is repaid from a debt service fund (because the bond proceeds were used to benefit the governmental funds), what amount of expenditures would be recognized in the debt service fund for 2022? What amount of expense would be recognized if the bonds were repaid in an enterprise fund (because the bond proceeds were used to benefit the enterprise fund)?

The city of Clinton was incorporated on January 1, 2014. On December 31, 2019, a careful study of the city’s records revealed the following information regarding long-term debt: a. General obligation bonds in the amount of $1,500,000 were authorized and issued at face value on July 1, 2014, to finance the construction of a school. The 6% bonds pay interest semiannually on January 1 and July 1, and they mature 10 years from the issuance date. b. Serial bonds of $1,000,000 were sold at 99 on January 1, 2016, to help finance a new city hall and cultural center. An additional $750,000 was received from an anonymous benefactor. The 5% serial bonds were to be redeemed in annual amounts of $100,000, beginning on January 1, 2019. A sinking fund was established on January 2, 2016, to provide for the retirement of the serial bonds. Deposits of $70,000 were to be made on January 2 of each year, beginning in 2016. All amounts deposited were invested immediately at a net yield of 8%. c. Property…