Ponca City issued general obligation bonds to finance construction of a new city hall.In the city hall capital projects fund,the proceeds of the general obligation bonds should be credited to:

Question

Quizplus · Accepted Answer

The proceeds from the general obligation bonds should be credited to "Other Financing Sources-Bond Issue Proceeds" as this account represents the inflow of resources from the bond issuance. The other options do not accurately reflect the nature of the transaction. "Revenue-General Obligation Bonds" would be used to record the recognition of revenue from the taxes levied to pay off the bonds, which would happen in subsequent periods. "General Obligation Bonds Payable" would be credited once the bonds mature and need to be paid back. "Deferred Revenue-General Obligation Bonds" is incorrect as there is no deferral of revenue since the bond proceeds are received upfront.

Ponca City Issued General Obligation Bonds to Finance Construction of a New