City ‘A’ issued OMR 2,750,000, 1.5 percent serial bonds, paying interest on January 1 and July 1. The bonds were sold on June 1 for 102. The city is required to use all accrued interest and premiums to service the debt. Any additional resources needed to service the debt are to come from the General Fund. The city’s year-end is December 31. Required: Prepare in general journal form the budgetary entry the debt service fund would make to account for this serial bond issue.
City ‘A’ issued OMR 2,750,000, 1.5 percent serial bonds, paying interest on January 1 and July 1. The bonds were sold on June 1 for 102. The city is required to use all accrued interest and premiums to service the debt. Any additional resources needed to service the debt are to come from the General Fund. The city’s year-end is December 31. Required: Prepare in general journal form the budgetary entry the debt service fund would make to account for this serial bond issue.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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City ‘A’ issued OMR 2,750,000, 1.5 percent serial bonds, paying interest on January 1 and July 1. The bonds were sold on June 1 for 102. The city is required to use all accrued interest and premiums to service the debt. Any additional resources needed to service the debt are to come from the General Fund. The city’s year-end is December 31.
Required: Prepare in general journal form the budgetary entry the debt service fund would make to account for this serial bond issue.
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