The City of Fairfield issued $100 million of 20-year, 6 percent coupon bonds (3 percent per semiannual period) for $89.32 million. The price reflected a yield of 7 percent (3.5 percent period semiannual period). 1. prepare entries to reflect how to report the following in the city's government-wide statements:
a. the issuance of the bond
b. the first semiannual payment of interest
c. the second semiannual payment of interest

2. prepare entries to account for the same transactions in an appropriate government fund.

Respuesta :

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

Ver imagen cancinodavidq