A city issues $2 million of bonds at par. It incurred $0.1 million in associated costs to issue the bonds. The money raised by the bonds will go to a capital project fund.

Which accounting entry should this city make in its capital project fund?

Debit cash: $ 1.9 million; debit bond issue cost; $,01 million; Credit bond proceeds ; $2 million.

Debit cash ; $2million Credit bond proceeds $1,9;milion: credit bond issue costs $0.1 million.

Debit cash $2 million; Debit bond issues cost;$0.1 million; credit bond proceeds; $2 million; credit bond premiums $0.1 million

Debit cash $1.9 million; Debit bond premiums $0.1 million; credit bond proceeds; $2 million