Use the Following Information to Answer Questions

question 12

Multiple Choice

Use the following information to answer questions
Several years ago, the City of Russell issued $7 million of 6% serial bonds at 101.Principal payments of $350,000 are due each June 30 for 20 years.Interest on the bonds is payable each December 31 and June 30.As of June 30, 2011, the City has not paid the June 30 principal and interest payment.
-The amount of bonds payable that should be included on the balance sheet for the debt service fund of the City of Russell at June 30, 2011 would be

• A)$0.
• B)$350,000.
• C)$700,000.
• D)$3,150,000.

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Definitions:

Psychological Objection

A mental barrier or resistance rooted in personal beliefs or fears, affecting one's decision-making process.

Resistance To Spending

The hesitation or unwillingness of consumers or organizations to use funds for purchasing products or services.

Overstock

An excess of inventory beyond what is needed, often leading to discounted sales prices to reduce the surplus.

Stalling Objection

A delay or hesitation during a negotiation or decision-making process, often due to concerns or uncertainty.