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Carson Citys capital projects fund issued $1,000,000 of 10-year 3% serial bonds at 102 on June 15, 2023. Interest payments are made each December 15
Carson Citys capital projects fund issued $1,000,000 of 10-year 3% serial bonds at 102 on June 15, 2023. Interest payments are made each December 15 and June 15. Annual principal payments begin on June 15, 2024. If the premium is amortized evenly (over 20 interest periods), which of the following entries would be required to record the December 15, 2023, interest payment?
Debits Credits
a. Debt Service Fund
ExpensesInterest on Long-Term Debt 15,000
Cash 15,000
b. Governmental Activities
ExpensesInterest on Long-Term Debt 15,000
Cash 15,000
c. Debt Service Fund
ExpendituresBond Interest 15,000
Cash 15,000
Governmental Activities
ExpensesInterest on Long-Term Debt 14,000
Premium on Bonds Payable 1,000
Cash 15,000
d. Debt Service Fund
ExpendituresBond Interest 14,000
Premium on Bonds Payable 1,000
Cash 15,000
Governmental Activities
ExpensesInterest on Long-Term Debt 14,000
Premium on Bonds Payable 1,000
Cash 15,000
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
13th Edition
9780470374948, 470423684, 470374942, 978-0470423684
