Refunding bonds were issued by an Enterprise Fund with a face value of 15,000,000 at a 1 discount. Issuance costs were 225,000 . The entry to record the issuance of the refunding bonds would be
Debit Credit
A. Cash
Expenditures
Other Financing Uses Discount
Other Financing Sources Bonds 14,625,000
225,000
150,000
15,000,000
B. Cash
Expenditures
Other Financing Sources Bonds 14,625,000
225,000
14,850,000
C. Cash
Unamortized Deferred Charges/Discount
Bond Payable 14,625,000
375,000
15,000,000
D. Cash
Bond Issuance Expense
Unamortized Discount
Bonds Payable 14,625,000
225,000
150,000
15,000,000
Question 2
Deferrals are recorded transactions that delay the recognition of an expense or revenue.
a. True
b. False
Indicate whether the statement is true or false
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