Question

A government has bonds outstanding at the beginning of the current year. The debit in the worksheet entry to bring these on to the government-wide financial statements would be to:

A. Proceeds from Sale of Bonds.
B. Amount to be Provided for Long-Term Debt.
C. Expenditures - Bond Principal.
D. Net Position - beginning balance.

Answer 1

The debit in the worksheet entry to bring government bonds onto the government-wide financial statements would be Amount to be Provided for Long-Term Debt.

Step-by-step explanation:

The debit in the worksheet entry to bring government bonds onto the government-wide financial statements would be B. Amount to be Provided for Long-Term Debt.

When government bonds are brought onto the government-wide financial statements, they are recorded as a liability under long-term debt. The amount to be provided for long-term debt represents the outstanding balance of the bonds at the beginning of the current year.

For example, if the government has $1,000,000 of bonds outstanding at the beginning of the year, the debit entry to bring these bonds onto the government-wide financial statements would be to the Amount to be Provided for Long-Term Debt account for $1,000,000.