2. A $7,200,000 issue of serial bonds to finance a capital project was sold at 108 plus accrued interest in the amount of $72,000. The accrued interest and the premium were recorded in the debt service fund. Accrued interest on bonds sold must be used for interest payments; the premium is designated by state law for eventual payment of bond principal. 2. Capital Projects Fund Cash 7,200,000 Other Financing SourcesProceeds of Bonds 7,200,000 Debt Service Fund Cash Other Financing SourcesPremium on Bonds Payable Revenues 72,000 Governmental Activities Cash Premium on Bonds Payable Interest Payable Serial Bonds Payable 72,000