Advanced Accounting 12th Edition by Joe Ben Hoyle,Thomas Schaefer , Timothy Doupnik

Exercise 10

A city issues five-year bonds payable to finance construction of a new school. What recording should be made
A) Report the liability in the government-wide financial statements; show an other financing source in the fund financial statements.
B) Report a liability in the government-wide financial statements and in the fund financial statements.
C) Show an other financing source in the government-wide financial statements and in the fund financial statements.
D) Show an other financing source in the government-wide financial statements; report a liability in the fund financial statements.