Voters in Lincoln School District Approved the Construction of a New

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 percent 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 $0.5 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 additional funding for the construction should be

A) Debit Due from general fund $0.5 million; Credit Other financing sources-nonreciprocal transfer-in $0.5 million.
B) Debit Due from general fund $0.5 million; Credit Revenue $0.5 million.
C) Debit Cash $0.5 million; Credit Due to general fund $0.5 million.
D) Debit Other financing sources $0.5 million; Credit Due to general fund $0.5 million.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free