A local government sells bonds having a face value of $1,000,000 at par.The bond proceeds will be accounted for in a Capital Projects Fund.What account will be credited to offset the debit to cash?
A)other financing sources
B)citizens' equity
C)fund balance
D)bonds payable

Question

Quizplus · Accepted Answer

The account credited to offset the debit to cash would be "other financing sources", as the proceeds from the bond issuance are considered financing and not revenue.

A Local Government Sells Bonds Having a Face Value of $1,000,000