If cash is paid to a trustee who administers a sinking fund, the corporation would credit the Bond Sinking Fund for the amount of cash paid.

Name: If cash is paid to a trustee who administers a sinking fund, the corporation would credit the Bond Sinking Fund for the amount of cash paid.
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Question

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When cash is paid to a trustee for a sinking fund, the corporation would debit the Bond Sinking Fund account, increasing the asset, and credit Cash, decreasing the asset.

If Cash Is Paid to a Trustee Who Administers a Sinking