The Following Entries Were in the Governmental Funds

question 132

Essay

The following entries were in the governmental funds.
Required:
Part A.What is the worksheet entry required to adjust beginning net assets in the 12/31/2012 government-wide financial statements for long term debt?
Part B.What are the worksheet entries to adjust for current year activity in long-term debt for the year ended 12/31/2012?
Assume interest for the year is due on 12/31 and the bond premium is amortized on the straight line basis.

---

Definitions:

ROE

Return on Equity, a financial ratio that measures the profitability of a business in relation to shareholder’s equity, indicating how well a company uses investments to generate earnings growth.

Dividend Growth Rate

The annualized percentage rate of growth of a company's dividend payments.

Constant Growth DDM

A valuation model for stocks that assumes dividends grow at a constant rate in perpetuity, used to calculate the present value of future dividend payments.

Intrinsic Value

The true, inherent, or fundamental value of an asset, based on both tangible and intangible factors, as opposed to its market price.