Local government-issued bonds to the value of RO 500,000 to finance its general operating expenditure at 10 % premium. Which one of the following journal entries records this transaction in the general fund? a. None of the options b. Bank Account Dr. 550,000, Proceeds from issue of bonds Account Cr. 500,000, Premium on issue of bonds Account Dr. 50,000 c. Bank Account Dr. 550,000, Cash Account Dr. 550,000 d. Bank Account Dr. 550,000, Proceeds from issue of bonds Account Cr. 500,000, Premium on issue of bonds Account Cr. 50,000
Local government-issued bonds to the value of RO 500,000 to finance its general operating expenditure at 10 % premium. Which one of the following journal entries records this transaction in the general fund? a. None of the options b. Bank Account Dr. 550,000, Proceeds from issue of bonds Account Cr. 500,000, Premium on issue of bonds Account Dr. 50,000 c. Bank Account Dr. 550,000, Cash Account Dr. 550,000 d. Bank Account Dr. 550,000, Proceeds from issue of bonds Account Cr. 500,000, Premium on issue of bonds Account Cr. 50,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Local government-issued bonds to the value of RO 500,000 to finance its general operating expenditure at 10 % premium. Which one of the following journal entries records this transaction in the general fund?
a.
None of the options
b.
Bank Account Dr. 550,000, Proceeds from issue of bonds Account Cr. 500,000, Premium on issue of bonds Account Dr. 50,000
c.
Bank Account Dr. 550,000, Cash Account Dr. 550,000
d.
Bank Account Dr. 550,000, Proceeds from issue of bonds Account Cr. 500,000, Premium on issue of bonds Account Cr. 50,000
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