In the fiscal year ended September 30, 20X9, debt service payments were made in January and July from the Debt Service Fund in the total amount of $25,000 ($10,000 principal, $15,000 interest)
The sole financial resource for the debt service payments are the proceeds of a special debt service tax levy. The taxes are paid in increments of about $27,000 and are due in June of each year. For the fiscal year ended September 30, 20X9, assuming $24,000 of taxes had been collected for this fiscal year, the expenditures reported in the Debt Service Fund would be
a. $0
b. $10,000
c. $15,000
d. $24,000
e. $25,000
E
You might also like to view...
Asset turnover is computed as:
Select one: A. Net income / Year-end total assets B. Net sales / Average total assets C. Average total assets / Net sales D. Average total assets x Net sales
The profit margin, the debt-equity ratio, and the dividend payout ratio for Fake Stone, Inc. are constant. Sales are expected to increase by $1,062 next year. What is the projected addition to retained earnings for next year?
A. $92.34 B. $188.55 C. $1,909.16 D. $2,144.34 E. $2,386.08