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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?
| Option | General Journal | 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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