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Voters in Phillips City approved the construction...

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Voters in Phillips City approved the construction of a new $10 million city hall building and approved a $10 million bond issue with a stated rate of interest of 6% to fund the construction. When the bonds were issued, they sold for 101. What are appropriate entries related to the premium? In the debt service fund Answer -Debit Cash $100.000; Credit Revenues $100,000 ; no other entries required. -Debit Cash $100,000; Credit Other Financing Sources?Nonreciprocal Transfer $100,000; No other entries required. -Other Financing Sources?Nonreciprocal Transfer $100,000; credit Cash $100,000. -No entry in the Debt Service Fund,Voters in Phillips City approved the construction of a new $10 million city hall building and approved a $10 million bond issue with a stated rate of interest of 6% to fund the construction. When the bonds were issued, they sold for 101. What are appropriate entries related to the premium? In the capital project fund: -Debit Cash $100.000; Credit Revenues $100,000 ; no other entries required. -Debit Cash $100,000; Credit Other Financing Sources $100,000; No other entries required. -Debit Cash $100,000; Credit Revenues; ALSO Debit Other Financing Uses?Nonreciprocal Transfer $100,000; Credit Cash $100,000 -Debit Cash $100,000; Credit Other Financing Sources?$100,000; ALSO Debit Other Financing Uses?Nonreciprocal Transfer $100,000; Credit Cash $100,000

 

Paper#9397 | Written in 18-Jul-2015

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