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A $5,000,000 Bond Is Issued by Northern City to Build

Question 76

Essay

A $5,000,000 bond is issued by Northern City to build a new hospital and the proceeds of the bond are received directly by the fund that will be disbursing the monies for the hospital construction.
Required:
Prepare the journal entry and identify the fund in which it is recorded to reflect the bond issue.

Correct Answer:

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