A city issues $5 million of long-term general obligation bonds to construct a new fire house.How and where should that transaction be recorded?

Question

Quizplus · Accepted Answer

The issuance of bonds for a capital project, like constructing a fire house, should be recorded as an "other financing source" in the capital projects fund, as this fund is used to account for financial resources used for the acquisition or construction of major capital facilities.

A City Issues $5 Million of Long-Term General Obligation Bonds