Multiple Choice
A city's electric utility enterprise fund made its annual interest payment on its outstanding $20 million of 6 percent bonds, which were originally issued at a premium.The city maintains its books and records in a manner that facilitates preparation of fund financial statements.The entry to record the interest payment would include a credit to cash for the amount of the interest checks written and debit(s) to
A) Interest expenditure AND bond premium.
B) Interest expense AND bond premium.
C) Interest expenditure only.
D) Interest expense only.
Correct Answer:
Verified
Correct Answer:
Verified
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