The following transactions take place: 1. The General Fund repaid the Special Revenue Fund a loan of

Question:

The following transactions take place:
1. The General Fund repaid the Special Revenue Fund a loan of $10,000 plus $900 in interest on the loan.
2. On January 1, the city issued 9% general obligation bonds with a of $2,000,000 payable in 10 years to finance the construction of city offices. Total proceeds were $2,300,000.
3. On December 20, construction was completed and occupancy taken of the city offices.
The full cost of $1,960,000 was paid to the contractor, and appropriate closing entries were made with regard to the project.

Required:
Prepare entries in general journal form to record these transactions in the proper fund(s).
Designate the fund in which each entry is recorded.

Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...