. The City of Paradise issued Bonds of $1,250,000 for the Construction of a City Hall. The City Hall’s bonds are sold at a premium of $150,000; therefore the estimated cost of the Hall is $1,100,000. Required: a. Prepare general journal entries to record the issue of the bonds by General Fund. b. Prepare general journal entries to transfer the premium amount to the debt service fund.
. The City of Paradise issued Bonds of $1,250,000 for the Construction of a City Hall. The City Hall’s bonds are sold at a premium of $150,000; therefore the estimated cost of the Hall is $1,100,000. Required: a. Prepare general journal entries to record the issue of the bonds by General Fund. b. Prepare general journal entries to transfer the premium amount to the debt service fund.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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5.
2. The City of Paradise issued Bonds of $1,250,000 for the Construction of a City Hall. The City Hall’s bonds are sold at a premium of $150,000; therefore the estimated cost of the Hall is $1,100,000. Required:
a. Prepare general
b. Prepare general journal entries to transfer the premium amount to the debt service fund.
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