The city of Columbus issued bonds at par for the construction of a new city office building.Receipt of the bond proceeds would result in journal entries in which funds?

Question

Quizplus · Accepted Answer

The issuance of bonds at par for the construction of a new city office building would result in journal entries in the Capital Projects Fund to account for the receipt of bond proceeds. However, it would not affect the Debt Service Fund as this fund is used to make debt payments (i.e. principal and interest) on existing debt obligations.

The City of Columbus Issued Bonds at Par for the Construction