2. [Para. 5-a-2] On February 1, 2023, 2.5% deferred serial bonds with a face value of $3,000,000 were sold for a total amount of $3,036,250, of which $6,250 was for accrued interest from the January 1, 2023 date of the bonds and $30,000 was a premium on the bonds sold. Cash in the amount of the accrued interest and premium was deposited directly in the Street Improvement Bond Debt Service Fund. Cash in the amount of $3,000,000 was deposited and recorded in the Street Improvement Fund. Required: Record these transactions in the Street Improvement Fund and governmental activities journals. In addition to recording the liability for bonds payable in the governmental activities journal, you should record the premium on the bonds payable (credit Premium on Deferred Serial Bonds) and accrued interest on bonds sold (we recommend that you credit Expenses Interest on Long-term Debt)in the governmental activities general journal for the $6,250 of

2. [Para. 5-a-2] On February 1, 2023, 2.5% deferred serial bonds with a face value of $3,000,000 were sold for a total amount of $3,036,250, of which $6,250 was for accrued interest from the January 1, 2023 date of the bonds and $30,000 was a premium on the bonds sold. Cash in the amount of the accrued interest and premium was deposited directly in the Street Improvement Bond Debt Service Fund. Cash in the amount of $3,000,000 was deposited and recorded in the Street Improvement Fund. Required: Record these transactions in the Street Improvement Fund and governmental activities journals. In addition to recording the liability for bonds payable in the governmental activities journal, you should record the premium on the bonds payable (credit Premium on Deferred Serial Bonds) and accrued interest on bonds sold (we recommend that you credit Expenses Interest on Long-term Debt)in the governmental activities general journal for the $6,250 of

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 7P: Wilbury Corporation issued 1 million of 13.5% bonds for 985,071.68. The bonds are dated and issued...

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