The City of Bamberg, which has a fiscal year end of December 31, issued a nine month $1,000,000 bond anticipation note on July 1

Question

3 years ago

6

The City of Bamberg, which has a fiscal year end of December 31, issued a nine month $1,000,000 bond anticipation note on July 1

. The city is planning to renew or re-issue the bond anticipation notes for another six month period when they mature. What would the Capital Projects Fund liability for the note be on December 31?

Business

1 answer:

evablogger [386] · Answer 1 · 2022-02-11T17:08:57+03:00

Answer:

$1,000,000

Explanation:

The computation of the Capital Projects Fund liability for the note is shown below:

= Issued price

= $1,000,000

The time period should be ignored. As the question has asked about the Capital Projects Fund liability , so we consider only the amount i.e $1,000,000 without considering its time period, and the dates which are mentioned in the question.