Ask Question
BusinessBusiness
12 February, 23:19

The City of Twizzle issues $10,000,000 face value of general obligation bonds for $9,800,000. The bonds will be used for the construction of new city streets. What journal entry should the City make in its Capital Projects Fund to record the issuance of these bonds?

+1
Answers (2)
  1. 13 February, 01:16
    0
    Dr Cash $9,800,000

    Dr Other financing use-bond issue discount $200,000

    Cr Other financing source-long-term debt issued $10,000,000

    Explanation:

    Journal entries

    Dr Cash $9,800,000

    Dr Other financing use-bond issue discount $200,000

    Cr Other financing source-long-term debt issued $10,000,000

    $10,000,000 - $9,800,000

    =$200,000

    Therefore since $10,000,000 face value of general obligation bonds for $9,800,000 we are to debit Cash $9,800,000 as well as Other financing use-bond issue discount $200,000 which is the difference between $10,000,000 - $9,800,000 while we credit

    Other financing source-long-term debt issued at $10,000,000
  2. 13 February, 01:48
    0
    The City of Twizzle will debit its Cash/Bank account with $9,800,000 as well as Debit entry of $200,000 for discount on bond account. The credit enry of $10,000,000 will recorded in the bond account.

    Date Description DR CR

    Cash/Bank 9,800,000

    Discount on Bonds 200,000

    Bond Payable 10,000,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The City of Twizzle issues $10,000,000 face value of general obligation bonds for $9,800,000. The bonds will be used for the construction ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
If you use credit, What are you creating? a) A default b) Debt c) Collateral d) like of credit
Answers (1)
On June 30, 2021, the Esquire Company sold merchandise to a customer and accepted a noninterest-bearing note in exchange. The note requires payment of $48,000 on March 31, 2022. The fair value of the merchandise exchanged is $44,760.
Answers (1)
Morgan signs a contract with Shane agreeing to work with him for a movie. Halfway through the production of the movie, Shane decides to quit as he gets another job as a marketing executive.
Answers (1)
In year one adam earns $1000 and saves $100. In year 2, Adam gets a $500 raise so that he earns a total of $1,500. Out of that $1,500 he saves $200. What is Adam's MPC out of his $500 raise? a. 0.50 b. 0.75 c. 0.80 d. 1.00
Answers (1)
Which of the following is a likely procedure to test the adequacy of the allowance for doubtful accounts? A. Examine cash receipts received after year-end. B. Confirm receivables. C. Examine dates of purchase orders. D.
Answers (1)
New Questions in Business
As you approach potential investors for you new business, it's important to present them with A. a good, solid business plan. B. your goals for lifelong happiness. C. your highest hopes for success. D. a detailed list of your needs.
Answers (1)
Squirrel Co. operates in a lean manufacturing environment. For June production, Squirrel purchased 6,000 units of raw materials at $6.00 per unit on account. The journal entry required to record this transaction is: a.
Answers (1)
The Collins Company forecasts that total overhead for the current year will be $12,000,000 and that total machine hours will be 200,000 hours. Year to date, the actual overhead is $8,000,000 and the actual machine hours are 100,000 hours.
Answers (1)
A bond has a $1,000 par value, 11 years to maturity, and pays a coupon of 4.75% per year, semiannually. The bond can be called in five years at $1,050. If the bond's price is $797.92, what is its annual yield to maturity
Answers (1)
This inventory system requires a physical inventory count to be made at least once during the year. Answer 1 This inventory system computes and records cost of goods sold at the time of sale.
Answers (1)
Home » Business » The City of Twizzle issues $10,000,000 face value of general obligation bonds for $9,800,000. The bonds will be used for the construction of new city streets.
Sign Up Forgot Password?