(Answered) Question - voters in phillips city approved the

Accounting

Question - Voters in Phillips City approved the construction of a new $10 million city hall building and approved a $10 million bond issue with a stated rate of interest of 6% to fund the construction. When the bonds were issued, they sold for 101. What are appropriate entries related to the premium? In the debt service fund

-Debit Cash $100.000; Credit Revenues $100,000 ; no other entries required.

-Debit Cash $100,000; Credit Other Financing Sources-Nonreciprocal Transfer $100,000; No other entries required.

-Other Financing Sources-Nonreciprocal Transfer $100,000; credit Cash $100,000.

-No entry in the Debt Service Fund

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