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

question 15

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.
-What would be the amount of expenditures recorded by the debt service fund for the fiscal year ended December 31, 2018?

• A) $440,000.
• B) $324,000.
• C) $314,000.
• D) $120,000.

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Definitions:

Service Cost

The total expense of providing a service, encompassing labor, materials, and overheads necessary to deliver the service to customers.

Customers' Waiting

The period that customers spend in a queue or delay before receiving a product, service, or response from a business.

Waiting Line

A queue of people or items waiting to be served or processed, common in service areas and manufacturing.

Line Length

denotes the physical length of a production or assembly line, which can affect efficiency, throughput, and space utilization in a manufacturing setting.