Reporting Information about Long-term Liabilities
On January 1, 2004, the city of Nashvegas issued an 8% annual, 10-year, $10,000 bond for $11,472 (an effective yield of 6%). The bonds become due on December 31, 2013. On June 30, 2012, the city of Nashvegas issued an 8% annual, 10-year, $10,000 bond to yield 10% (the proceeds are $8,771).
Required:
- Assuming that both bonds are general obligation bonds, prepare the schedule of long-term liabilities at December 31, 2012.
- Determine the amount of interest reported on the government-wide statement of activities for the year ending December 31, 2012.
- Determine the amount of long-term liabilities reported on the government-wide statement of net assets at December 31, 2012.
- Determine the total amount of interest expenditures included in the governmental statement of revenues, expenditures, and changes in net assets for the year ending December 31, 2012.
- Determine the amount of debt (if any) reported on the governmental funds balance sheet.