A local government recorded the payment of bond principal by debiting Expenditure: bond principal and crediting Cash.What is the worksheet entry when preparing the government-wide statements?

Question

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The government-wide statements combine the activities of the governmental funds, including the expenditure of bond principal. When recording this transaction on the government-wide worksheet, the account debited should be Bonds Payable (a liability account) and the account credited should be Expenditure: Bond Principal (an expense account). This entry properly reflects the reduction in the government's outstanding debt and the corresponding expense recognized on the government-wide statements.

A Local Government Recorded the Payment of Bond Principal by Debiting