The City of Columbus Issued Bonds at Par for the Construction

question 41

Multiple Choice

The city of Columbus issued bonds at par for the construction of a new city office building.Receipt of the bond proceeds would result in journal entries in which funds?

• A) Capital Projects Fund: Yes; Debt Service Fund: No
• B) Capital Projects Fund: No; Debt Service Fund: Yes
• C) Capital Projects Fund: Yes; Debt Service Fund: Yes
• D) Capital Projects Fund: No; Debt Service Fund: No

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Definitions:

Dividend

A payment made by a corporation to its shareholders, usually derived from profits.

Stock Owners

Individuals or entities that hold shares of stock in a corporation, representing partial ownership of that corporation.

Par Preferred Stock

Preferred shares of a company's stock with a fixed face value that typically determines dividend payments.

Par Common Stock

This is a classification of common stock that has a nominal value assigned in the corporate charter and is used in the accounting records.