At the end of the accounting period, the following should occur with supplies.
a. No action is required.
b. An adjusting entry should be made to expense the used supplies at the end of the period.
c. A physical inventory should be taken.
d. Both b and c.
Question 2
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
dr cr
a. Cash 14,625,000 Expenditures 225,000 Other Financing Uses Discount 150,000 Other Financing Sources Bonds 15,000,000
b. Cash 14,625,000 Expenditures 225,000 Other Financing Sources Bonds 14,850,000
c. Cash 15,000,000 Bonds Payable 15,000,000
d. Cash 14,625,000
Unamortized Deferred Charges/Discount 375,000
Bonds Payable 15,000,000
e. Cash 14,625,000
Expenditures 225,000
Unamortized Discount 150,000
Bonds Payable 15,000,000
