A city issues $2 million of bonds at par. It incurred $0.1 million in associated costs to
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Question:
A city issues $2 million of bonds at par. It incurred $0.1 million in associated costs to issue the bonds. The money raised by the bonds will go to a capital project fund.
Which accounting entry should this city make in its capital project fund?
Debit cash: $ 1.9 million; debit bond issue cost; $,01 million; Credit bond proceeds ; $2 million.
Debit cash ; $2million Credit bond proceeds $1,9;milion: credit bond issue costs $0.1 million.
Debit cash $2 million; Debit bond issues cost;$0.1 million; credit bond proceeds; $2 million; credit bond premiums $0.1 million
Debit cash $1.9 million; Debit bond premiums $0.1 million; credit bond proceeds; $2 million
Related Book For
Accounting for Governmental and Nonprofit Entities
ISBN: ?978-0073379609
15th Edition
Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus
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