Sugar City Issued $2 Million of Bonds to Fund the Construction

question 40

Multiple Choice

Sugar City issued $2 million of bonds to fund the construction of a new city office building. The bonds have a stated rate of interest of 5 percent and were sold at 101. Which of the following entries should be made in the capital projects fund to record this event?

• A) Debit Cash $2.02 million; Credit Bonds payable $2 million and Premium on bonds payable $0.02 million.
• B) Debit Cash $2.02 million; Credit Bonds payable $2 million and Other financing sources $0.02 million.
• C) Debit Cash $2.02 million; Credit Other financing sources $2.02 million.
• D) Debit Cash $2.02 million; Credit Other financing sources $2 million and Revenue $0.02 million.

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Definitions:

Avoidant Children

Children who exhibit a tendency to avoid contact or interaction with caregivers or others, often as a result of attachment issues.

Securely Attached

Describes individuals, typically in the context of infant-caregiver relationships, who show confidence in exploring their environment due to the reliable and consistent response of their caregiver.

Zygote

The initial cell formed when a sperm cell unites with an egg cell, which then undergoes cell division to develop into an embryo.

Uterine Wall

The muscular layer of the uterus, which expands during pregnancy to accommodate a growing fetus and contracts during childbirth.