In which of the plant fund subgroups would you find the following transaction: A bond principal payment is made on a bond that was issued with the proceeds being designated for construction of a new athletic facility?

Question

In which of the plant fund subgroups would you find the following transaction: A bond principal payment is made on a bond that was issued with the proceeds being designated for construction of a new athletic facility?​

Quizplus · Accepted Answer

This transaction involves a payment towards a bond that was issued for the purpose of financing a specific construction project. Therefore, it falls under the category of retirement of indebtedness, which is a subcategory of the plant fund.

In Which of the Plant Fund Subgroups Would You Find