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Discuss how the bond premium could be disposed.

Discuss how the bond premium could be disposed.

Assignment Description

Your city has decided to build a new library. The projected cost is  $2 million. A bond issue for $1.2 million has been authorized, and the  remainder is supposed to come from a contribution of $800,000 from the  general fund. The bonds sold for $1.3 million, a premium of $100,000.  Create the required journal entries for the following transactions:

The budget for the library

The payment and receipt of funds from the general fund

The issuance of the bonds

Assume that the premium remained in the capital projects fund.

Identify all of the funds required for these entries.

Discuss how the bond premium could be disposed.

In general terms, compare and contrast how expenditures are  controlled in the general fund and in debt service funds. Explain why  differences would occur.

750 word

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Regards,

Custоmer Suppоrt

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