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The City of Twizzle issues $1,000,000 face value of general obligation bonds for $1,100,000. The bonds will be used for the construction of new city
The City of Twizzle issues $1,000,000 face value of general obligation bonds for $1,100,000. The bonds will be used for the construction of new city streets. What journal entry should the City make in its Capital Projects Fund to record the issuance of these bonds? Select one: 1,100,000 a. Cash Other financing source-long-term debt issued Other financing source-bond issue premium 1,000,000 100,000 1,100,000 b. Cash Other financing source-long-term debt issued Other financing source-bond issue discount 1,000,000 100,000 c. Cash Other financing source-long-term debt issued 1,000,000 1,000,000 d. Cash Other financing source-long-term debt issued 1,100,000 1,100,000
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