During the Fiscal Year Ended December 31, 2017, the City

question 115

Multiple Choice

During the fiscal year ended December 31, 2017, the City of Johnstown issued 6% general obligation serial bonds in the amount of $2,000,000 at 102 $2,040,000) and used $1,980,000 of the proceeds to construct a fire station. The $40,000 premium was transferred to a debt service fund. The $20,000 left in the capital projects fund at the end of the project was later transferred to the debt service fund. The bonds were dated April 1, 2017 and paid interest on October 1 and April 1. The first of 10 equal annual principal payments was due on April 1, 2018.
-How would the government account for the transfer of the unused bond proceeds?

• A) As an other financing source in the debt service fund and as an other financing use in the capital projects fund.
• B) As a revenue in the debt service fund and as an expenditure in the capital projects fund.
• C) As an other financing source in the capital projects fund and as an other financing use in the debt service fund.
• D) As a special item in both the debt service and capital project funds.

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Definitions:

Preganglionic Axons

Axons of nerve cells that originate in the central nervous system and extend to a ganglion, transmitting nerve impulses.

Sympathetic Chain

A part of the sympathetic nervous system consisting of a series of interconnected ganglia located along the vertebral column.

ANS

Autonomic Nervous System; a control system that acts largely unconsciously and regulates bodily functions such as the heart rate, digestion, respiratory rate, pupillary response, urination, and sexual arousal.

Involuntary Nervous System

Part of the peripheral nervous system that controls involuntary bodily functions, including those of the heart, digestive system, and respiratory system. It's also known as the autonomic nervous system.