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3 years ago

Which of the following is correct with respect to Debt Service Funds?

Business

2 answers:

BigorU [14]3 years ago

7 0

Answer:

C. Debt service funds account for and report financial resources that are restricted, committed or assigned to expenditure for principle and interest for governmental debts except debt of proprietary and fiduciary funds who account for their own interest and principle payments.

Explanation:

Under the Codification of Governmental Accounting and Financial Reporting Standards by the Governmental Accounting Standards Board (GASB); Code 200 states that debt service funds are to be used to service terms and bond reserves, guaranty, warrants, note, capital leases, or sinking funds.

Debt service funds is a cash reserve that is used to account for and report financial resources that are restricted, committed or assigned to expenditure for principle and interest for governmental debts except debt of proprietary and fiduciary funds who account for their own interest and principle payments.

The purpose of using a debt service fund is to reduce the risk of a debt security for investors, thereby making it more attractive and appealing to them. Also, the debt service fund helps to mitigate the effective interest rate needed by the government to sell the offering.

The other types of governmental funds are namely;

- Capital projects funds.

- Permanent funds.

- General funds.

- Special revenue funds.

Verizon [17]3 years ago

5 0

Answer:

Explanation:

Debt service funds are used to pay for principal and interest on certain types of debts. This reduced the risk of debt security that investors face and also reduces the effective rate at which the offering can be sold.

However debt service funds cannot be used for proprietary funds like 400 and 500.

Instead we use Enterprise funds for 400. That is operations similar to corporate enterprise. For example water and sewage utilities.

Internal service funds for 500 used by other funds or departments bin a government in a cost reimbursement basis. For example a food supplier that takes orders and is reimbursed for each order.

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On January 1, 2020, Cheyenne Company purchased 40% of Santos Corporation 465,000 outstanding shares of common stock at a total c

d1i1m1o1n [39]

Solution :

The following journal entry will be prepared to record the transactions

Date General Journal Debt($) Credit($)

Jan 1 Investment in Cheyenne Co. 2,418,000

(465,000 x 40% x $13)

Cash 2,418,000

Oct. 25 Cash (465,000 x 40% x $0.4) 74,400

Investment in Cheyenne Co. 74,400

Dec 31 Investment in Cheyenne Co. 373,600

($934,000 x 40%)

Equity income in Cheyenne Co. 373,600

4 0

3 years ago

Hi Phi Sound Unlimited has a monopoly over the installation of surround sound systems. Hi Phi Unlimited's total revenue from ins

Maru [420]

Answer: $1000

Explanation:

You didn't give the options but let me help out.

From the question, we are informed that Hi Phi Unlimited's total revenue from installing 15 sound systems is $30,000 and its total revenue from installing 18 sound systems is $33,000.

The marginal revenue that is received from selling the 18th sound system would be calculated as:

=($33000 - $30000) / (18 - 15)

= $3000 / 3

= ,$1000

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3 years ago

one theory behind ____ is that the best outcome to civil ______ is a _____ and that parties will move toward agreement if they u

Leviafan [203]

Answer:

The correct answers that fills the gaps are: discovery, litigation, negotiated settlement, examine, evidence.

Explanation:

The litigation is a conflict of interest qualified and elevated to a jurisdictional authority, by a subject of law, with an intention or claim against another that manifests a resistance or that opposes the approach of the former, as Francisco Carnal suggests.

Some authors consider that the concept of litigation only applies to civil proceedings in contractual disputes, and that the term controversy should be used in criminal proceedings. However, progress has been made regarding this idea, because now, in criminal proceedings, civil action or damages are usually used, which gives rise to extra contractual liability.

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3 years ago

The year-end adjusted trial balance of Hilltoppers Corporation included the following account balances: Cash, $3,600; Equipment,

Galina-37 [17]

Answer:

Explanation:

The preparation of the post-closing trial balance is presented below:

Hilltoppers Corporation

Post-closing trial balance

Particulars Debit Credit

Service revenue $14,600

Cash $3,600

Accounts Payable $1,600

Utilities expense $2,600

Salaries expense $9,600

Equipment $15,600

Common stock $12,000

Retained earnings $4,400

Dividend $1,200

Total $32,600 $32,600

4 0

3 years ago

You just made the last monthly payment on a 30 year mortgage -- the house is yours! In your joyous moment, you calculate how muc

makkiz [27]

Answer:

$112,807

Explanation:

To calculate the amount of money you borrowed, you have to use the formula to calculate the present value:

PV=FV/(1+r)^n

PV= pressent value

FV= future value= 647,514

r= rate= 6%

n= number of periods of time= 30

PV=647,514/(1+0.06)^30

PV=647,514/(1.06)^30

PV=647,514/5.74

PV=112,807

According to this, you originally borrowed $112,807 for this house.

5 0

4 years ago