City issues $100,000 total bonds with the face value of $1,000. The interest rate is 10% on
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City issues $100,000 total bonds with the face value of $1,000. The interest rate is 10% on a semiannual rate. The bonds were issued for $102,000. Effective yield rate is 8%.
17. If the bond issue is reported on the government-wide statements the partial entry would be as follows:
A. Credit to cash of $102,000
B. Credit to premium on bonds of $2,000
C. Debit to discount on bonds of $2,000
D. Debit to cash for $102,000
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