The town of Decorah issued general obligation serial bonds at par to finance construction of several new streets in the town.Construction activity was accounted for in a capital projects fund.On the date the general obligation serial bonds were issued,what account was credited in Decorah's capital projects fund?

Question

Quizplus · Accepted Answer

The credit entry in the capital projects fund at the time of bond issuance should be to a financing source account, specifically "Other Financing Sources-Bond Issue Proceeds," as this represents the inflow of resources from the bond sale. The other options listed are not appropriate for this entry.

The Town of Decorah Issued General Obligation Serial Bonds at Par