A county issues general obligation bonds for a new police station, the bonds were sold at a discount and the county incurred underwriter's fees.

How should the county account for this transaction?

YOUR

ANSWER

CORRECT

ANSWER

Debit Cash and credit Other Financing Uses

Debit Cash and credit Other Financing Sources

Debit Cash

Debit Expenditures

Credit Other Financing Sources - Bonds

Credit Other Financing Sources - Discount

Debit Cash

Debit Expenditures - Underwriter Fees

Debit Other Financing Uses - Discount

Credit Other Financing Sources - Bonds