If a bond sale occurs between interest dates,accrued interest sold should be credited to Proceeds of Bonds.

Question

Quizplus · Accepted Answer

Accrued interest sold is conceptually an offset against the first semiannual interest payment after the issue; therefore, it should be recorded in a debt service fund rather than a capital projects fund. If this is not possible, the amount collected by the capital projects fund should be recorded as Due to Debt Service Fund, a current liability account, rather than as part of Proceeds of Bonds.

If a Bond Sale Occurs Between Interest Dates,accrued Interest Sold