2 # 3 $ 4 58 CHAPTER 8 Long-Term Obligations 5 Not-for-profits account for bonds similar to businesses. EX. 8-8 The Cleveland Historical Society issues $40 million of 6 percent, 15-year bonds at a price yield of $36,321,000 to finance the construction of a new museum. The price reflects an annual 7.0 percent Prepare the journal entry to record the issuance of the bonds. Indicate the category of funds 1. (e.g., restricted for unrestricted) in which the entry would be made. 2. Prepare the journal entry to record the first semiannual payment of bond interest. 3. Prepare the journal entry to record the second semiannual payment of bond interest. TINUING OBLEM Review the comprehensive annual financial report (CAFR) you obtained. 1. Per the city's schedule of long-term obligations, what is the total long-term obligation for both gov. ernmental and business-type activities? Does this amount reconcile with the long-term liabilities as reported on the government wide statement of net position? In addition to bonds payable, what other kinds of long-term debt for governmental activities did the city report in its statement of net position? 2. 3, Did the city increase or decrease its long form