1
ACC 405
Module 7 Project
Practice Problems and Solutions
Southern New Hampshire University
,2
, 3
ACC-405
Module Seven Project Practice Problems and Solutions
Problem 1. Circus City issued an 8%, ‐year $2,000,000 bond to build a monorail mass transit system. The city received $1,754,217 cash from
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the bond issuance on January 1, 2020. The bond yield is 10%. Interest is paid annually on December 31 of each year. Disclosure information
about capital assets is reported below.
Depreciation expense charged to governmental activities as follows:
Public Safety $ 55,000
General Government 72,000
Highways and Streets 25,000
Sanitation 17,000
$169,000
ACC 405
Module 7 Project
Practice Problems and Solutions
Southern New Hampshire University
,2
, 3
ACC-405
Module Seven Project Practice Problems and Solutions
Problem 1. Circus City issued an 8%, ‐year $2,000,000 bond to build a monorail mass transit system. The city received $1,754,217 cash from
10
the bond issuance on January 1, 2020. The bond yield is 10%. Interest is paid annually on December 31 of each year. Disclosure information
about capital assets is reported below.
Depreciation expense charged to governmental activities as follows:
Public Safety $ 55,000
General Government 72,000
Highways and Streets 25,000
Sanitation 17,000
$169,000
