Ledford County issued $2,000,000 of general obligation bonds for the construction of a new recreation center. The bonds were sold at a 1% discount and the county incurred $150,000 in underwriter's fees, both of which were withheld from the settlement proceeds. The journal entry required in the Capital Projects Fund for the issuance of the bonds would be Cash ... Other Financing Sources ... $2,000,000 $2,000,000 Cash ... Other Financing Sources ... $1,830,000 $1,830,000 Cash ... Expenditures ... Other Financing Sources - Bonds ... Other Financing Sources - Discount ... $1,850,000 150,000 $1,980,000 20,000 Cash ... Expenditures - Underwriter Fees ... Other Financing Uses - Discount ... Other Financing Sources - Bonds ... $1,830,000 150,000 20,000 $2,000,000

Question

Business

Joaquin Gates

10 May, 00:37

Ledford County issued $2,000,000 of general obligation bonds for the construction of a new recreation center. The bonds were sold at a 1% discount and the county incurred $150,000 in underwriter's fees, both of which were withheld from the settlement proceeds. The journal entry required in the Capital Projects Fund for the issuance of the bonds would be Cash ... Other Financing Sources ... $2,000,000 $2,000,000 Cash ... Other Financing Sources ... $1,830,000 $1,830,000 Cash ... Expenditures ... Other Financing Sources - Bonds ... Other Financing Sources - Discount ... $1,850,000 150,000 $1,980,000 20,000 Cash ... Expenditures - Underwriter Fees ... Other Financing Uses - Discount ... Other Financing Sources - Bonds ... $1,830,000 150,000 20,000 $2,000,000

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Answers (1)

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Jadiel Reeves · Answer 1

The Journal is given below

Explanation:

The Journal Entry required in the Capital Projects Fund is shown below:-

Cash Dr, $1,830,000

Expenditures - Underwriter Dr, $150,000

Other financing uses - Discount Dr, $20,000

($2,000,000 * 1%)

To other financing sources - Bonds $2,000,000

(Being issuance of the bonds is recorded)