Both the reported value of long­term debt and periodic interest

EX. 8­4Both the reported value of long­term debt and periodic interestCharges should be based on unamortized issue price (plus or minusUnamortized premiums or discounts) and initial yield.The City of Fairfield issued $100 million of 20­year,6 percent coupon bonds (3 percent per semiannual period)for $89.32 million. The price reflected a yield of 7 percent(3.5 percent period semiannual period).1. Prepare entries to reflect how the following would bereported in the city’s government­wide statements:a. The issuance of the bondb. The first semiannual payment of interestc. The second semiannual payment of interest2. Prepare entries to account for the same transactions inan appropriate governmental fund.EX. 8­4Both the reported value of long­term debt and periodic interestCharges should be based on unamortized issue price (plus or minusUnamortized premiums or discounts) and initial yield.The City of Fairfield issued $100 million of 20­year,6 percent coupon bonds (3 percent per semiannual period)for $89.32 million. The price reflected a yield of 7 percent(3.5 percent period semiannual period).1. Prepare entries to reflect how the following would bereported in the city’s government­wide statements:a. The issuance of the bondb. The first semiannual payment of interestc. The second semiannual payment of interest2. Prepare entries to account for the same transactions inan appropriate governmental fund.