Use the Following Information to Answer Questions

question 31

Multiple Choice

Use the following information to answer questions
Voters in Phillips City approved the construction of a new city hall building and approved a $5 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 capital projects fund

• A)Debit Cash $50,000; Credit Revenues $50,000; no other entries required.
• B)Debit Cash $50,000; Credit Other financing sources-transfer $50,000; No other entries required.
• C)Debit Cash $50,000; Credit Revenues; ALSO
• Debit Other financing uses-transfer $50,000; Credit Cash $50,000.
• D)Debit Cash $50,000; Credit Other financing sources-Bond premium $50,000; ALSO
• Debit Other financing uses-transfer $50,000; Credit Cash $50,000.

---

Definitions:

Accurate Memory

The ability to recall past events, information, or experiences with high fidelity and precision, with minimal errors or distortions.

Eyewitness

A person who has seen an event, typically a crime or accident, and can provide a first-hand account of what happened.

Suspect

To believe someone is guilty of a crime or wrongdoing without conclusive evidence.

Flashbulb Memories

Highly detailed and vivid memories of significant or emotional events, which are remembered with great confidence.