Chapter 6accounting for General Long-Term Liabilities and Debt Service
CHAPTER 6: ACCOUNTING FOR GENERAL LONG-TERM LIABILITIES AND DEBT SERVICE
OUTLINE
Number Topic Type/Task Status
(re: 12/e)
Questions:
6-1 Reasons for general long-term liabilities Explain 6-2
6-2 Disclosures of types and changes in liabilities Explain 6-6
6-3 General obligation bonds Describe 6-3
6-4 GO Bonds and enterprise funds Explain 6-5
6-5 Debt margin Explain 6-7
6-6 Purpose of debt service funds Explain 6-8
6-7 Number of debt service funds Explain 6-11
6-8 Year end balance Explain 6-12
6-9 Amortization of premiums and discounts Explain 6-14
6-10 Advance refunding of bonds Describe 6-15
Cases:
6-1
Analysis of general obligation debt burden Assess New
Exercises/Problems:
6-1 Examine the CAFR Examine 6-1 revised
6-2 Various Multiple Choice 6-2 revised
6-3 Long-term liability transactions Journal Entries 6-3
6-4 Statement of legal debt margin Financial Schedule 6-5
6-5 Capital lease Journal Entries 6-4
6-6 Direct and overlapping debt Financial Schedule 6-6
6-7 DSF and financial statements JEs and FS 6-8
6-8 Term bond debt service fund transactions; advance refunding JEs New
6-9
Comprehensive capital assets/long-term liabilities problem JEs & FS 6-9
CHAPTER 6: ACCOUNTING FOR GENERAL LONG-TERM LIABILITIES AND DEBT SERVICE
Answers to Questions
6-1. General long-term liabilities are often incurred to finance general capital assets that will be used in governmental activities. Liabilities may also be incurred for operating expenses of governmental activities or estimated losses from long-term claims and judgments.
6-2. During the period covered by the report even a relatively small governmental unit may have issued several kinds of debt instruments for various purposes; incurred capital lease obligations; repaid matured issues; called issues; purchased unmatured issues, or portions of them, on the open market; canceled leases, etc. A schedule that presents all of the information together and
OUTLINE
Number Topic Type/Task Status
(re: 12/e)
Questions:
6-1 Reasons for general long-term liabilities Explain 6-2
6-2 Disclosures of types and changes in liabilities Explain 6-6
6-3 General obligation bonds Describe 6-3
6-4 GO Bonds and enterprise funds Explain 6-5
6-5 Debt margin Explain 6-7
6-6 Purpose of debt service funds Explain 6-8
6-7 Number of debt service funds Explain 6-11
6-8 Year end balance Explain 6-12
6-9 Amortization of premiums and discounts Explain 6-14
6-10 Advance refunding of bonds Describe 6-15
Cases:
6-1
Analysis of general obligation debt burden Assess New
Exercises/Problems:
6-1 Examine the CAFR Examine 6-1 revised
6-2 Various Multiple Choice 6-2 revised
6-3 Long-term liability transactions Journal Entries 6-3
6-4 Statement of legal debt margin Financial Schedule 6-5
6-5 Capital lease Journal Entries 6-4
6-6 Direct and overlapping debt Financial Schedule 6-6
6-7 DSF and financial statements JEs and FS 6-8
6-8 Term bond debt service fund transactions; advance refunding JEs New
6-9
Comprehensive capital assets/long-term liabilities problem JEs & FS 6-9
CHAPTER 6: ACCOUNTING FOR GENERAL LONG-TERM LIABILITIES AND DEBT SERVICE
Answers to Questions
6-1. General long-term liabilities are often incurred to finance general capital assets that will be used in governmental activities. Liabilities may also be incurred for operating expenses of governmental activities or estimated losses from long-term claims and judgments.
6-2. During the period covered by the report even a relatively small governmental unit may have issued several kinds of debt instruments for various purposes; incurred capital lease obligations; repaid matured issues; called issues; purchased unmatured issues, or portions of them, on the open market; canceled leases, etc. A schedule that presents all of the information together and