The Town of McHenry has $13,000,000 in general obligation bonds outstanding and maintains a single debt service fund for all debt service transactions. On July 1, 2017, a current refunding took place in which $13,000,000 in new general obligation bonds were issued. Record the transaction on the books of the debt service fund.

transaction on the books are as given below

Explanation:

given data

outstanding and maintains = $13,000,000

current refunding = $13,000,000

solution

we get here Record the transaction on the books as that

Account Titles and Explanation Debit Credit

Cash $13,000,000

Other financing source refunding bonds issue $13,000,000

Other financing uses - refunding of existing debts $13,000,000

Cash $13,000,000