Use the Following Information to Answer Questions

question 53

Multiple Choice

Use the following information to answer questions
Voters in Lincoln School District approved the construction of a new high school and approved an $8 million bond issue with a stated rate of interest of 6% to fund the construction.Bids were received and the low bid was $8 million.When the bonds were issued, they sold for face value less bond underwriting fees of $.5 million.The School Board voted to fund the balance of the construction by a transfer from the general fund.
-The entry in the capital projects fund to record the receipt of the bond proceeds would be

• A)Debit Cash $7.5 million; Credit Bonds payable $7.5.
• B)Debit Cash $7.5 million; Credit Other financing sources $7.5.
• C)Debit Cash $7.5 million and Expenditures $.5 million; Credit Bonds payable $8 million.
• D)Debit Cash $7.5 million and Expenditures $.5 million; Credit Other financing sources $8.

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Definitions:

DNA

Deoxyribonucleic acid, a molecule that contains the instructions an organism needs to develop, live, and reproduce.

Nucleotide

Monomer of DNA and RNA consisting of a 5-carbon sugar bonded to a nitrogenous base and a phosphate group.

Nitrogen-Containing Base

An organic molecule with nitrogen that serves as a fundamental building block of the nucleic acids DNA and RNA.

Phosphate

An inorganic chemical compound containing phosphorus and oxygen, vital for energy transfer and storage in biological systems.