Question: (Refunding) Prepare the journal entry needed in an Enterprise Fund to record the following transaction. Paid the $8,000,000 into an irrevocable trust to defease in

(Refunding) Prepare the journal entry needed in an Enterprise Fund to record the following transaction.

Paid the $8,000,000 into an irrevocable trust to defease in substance the previously outstanding bonds payable of the Enterprise Fund. These old bonds have a par value of $7,200,000 and an unamortized discount of $100,000. The old bonds are scheduled to mature in six years.

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