【USCPA】FAR : Governmental Funds


On January 2, City of Walton issued $500,000, 10-year, 7% general obligation bonds. Interest is payable annually, beginning January 2 of the following year. What amount of bond interest is Walton required to report in the statement of revenue, expenditures, and changes in fund balance of its governmental funds at the close of this fiscal year, September 30?

a. $0
b. $17,500
c. $26,250
d. $35,000


前提

Governmental accounting に関する出題。

問題文より、Governmental Funds (General Fund).

➡︎ Modified Accrual Basis

Revenues : when AVAILABLE & MEASURABLE*
Expenses : expensed IMMEDIATELY

* AVAILABLE & MEASURABLE : collected this year plus 60 days into next year

PRIST : receivable 立てられる Revenue

Property Taxes
Real Estate Taxes
Income Taxes
Sales Taxes
Tax Payment Due from Other Govt. bodies

PRIST 以外は Cash Basis

 

数字まとめ

January 2
Walton issued $500,000, 10-year, 7% bonds

January 2 of following year
begins to pay interest annually

 

問われているもの

“What amount of bond interest is Walton required to report in the statement of revenue, expenditures, and changes in fund balance of its governmental funds at the close of this fiscal year, September 30?”

➡︎ 会計年度末 Sep 30 に、bond interest をいくら report するべきか。

 

本問について

Interest Expenditures は between payment dates では accrued されない!

 

解答

$0

Interest expenditures should be recorded when legally payable per the bond agreement. Interest expenditures should not be accrued between payment dates. Bonds were issued January 2, the balance sheet date is September 30 and the payment date is the following January 2. No interest expenditure would be recognized.