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750 WORDS
Your city has decided to build a new library. The projected cost
is $2 million. A bond issue for $1.2 million has been
authorized, and the remainder is supposed to come from a
contribution of $800,000 from the general fund. The bonds sold
for $1.3 million, a premium of $100,000. Create the required
journal entries for the following transactions:
The budget for the library
The payment and receipt of funds from the general fund
The issuance of the bonds
Assume that the premium remained in the capital projects fund.
Identify all of the funds required for these entries.
Discuss how the bond premium could be disposed.
In general terms, compare and contrast how expenditures are
controlled in the general fund and in debt service funds. Explain
why differences would occur.
750 WORDSYour city has decided to build a new library. The proje.docx

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