Answer:
Dr Cash $9,800,000
Dr Other financing use—bond issue discount $200,000
Cr Other financing source—long-term debt issued $10,000,000
Explanation:
Journal entries
Dr Cash $9,800,000
Dr Other financing use—bond issue discount $200,000
Cr Other financing source—long-term debt issued $10,000,000
$10,000,000 -$9,800,000
=$200,000
Therefore since $10,000,000 face value of general obligation bonds for $9,800,000 we are to debit Cash $9,800,000 as well as Other financing use—bond issue discount $200,000 which is the difference between $10,000,000 -$9,800,000 while we credit
Other financing source—long-term debt issued at $10,000,000
Answer:
The City of Twizzle will debit its Cash/Bank account with $9,800,000 as well as Debit entry of $200,000 for discount on bond account. The credit enry of $10,000,000 will recorded in the bond account.
Date Description DR CR
Cash/Bank 9,800,000
Discount on Bonds 200,000
Bond Payable 10,000,000
Explanation:
