Compute the interest expenditure mike will report in its


Mike Village sold $ 1,000,000 of general obligation bonds on October 1, 2012, maturing at the rate of $ 100,000 every 6 months starting April 1, 2013, and paying interest at the rate of 4 percent per annum on the unpaid balance. Compute
(a) The interest expenditure Mike will report in its fund statement of revenues, expenditures, and changes in fund balances for the calendar years ended December 31, 2012, and 2013 and
(b) The interest expense Mike will report in its government wide statement of activities for the same calendar years. Also, prepare journal entries needed to adjust Mike 2013 fund financial statements so government wide statements can be prepared.

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Accounting Basics: Compute the interest expenditure mike will report in its
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