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. 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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 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.

 

 

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