Pacic Independent School District issued $100 million of general obligation bonds to nance the construction of new
Question:
1. Prepare the capital projects fund journal entries to record the issue of the bonds and the transfer of the premium to an appropriate fund.
2. Suppose, instead, that the bonds were issued at a dis- count of $0.6 million but that the project will still cost $100 million. Prepare the appropriate entries.
a. Contrast the entries in this part with those in part 1.
b. Indicate the options available to the school district and state how they would affect the entries required of the district.
c. Suppose that the government chose to finance the balance of the project with general revenues. Prepare the appropriate capital projects fund entry.
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Related Book For
Government and Not for Profit Accounting Concepts and Practices
ISBN: 978-1118155974
6th edition
Authors: Michael H. Granof, Saleha B. Khumawala
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