Question

The issuance of bonds to provide resources to construct a new courthouse should be recorded in a Capital Projects Fund by crediting which of the following accounts?

a. Bonds payable
b. Revenues—bonds
c. Fund balance
d. Other financing source—long-term debt issued

Answer 1

The issuance of bonds to provide resources to construct a new courthouse should be recorded in a Capital Projects Fund by crediting 'd. Other financing source—long-term debt issued'.

Step-by-step explanation:

The issuance of bonds to provide resources to construct a new courthouse should be recorded in a Capital Projects Fund by crediting d. Other financing source—long-term debt issued.

When bonds are issued, they are considered as a long-term debt issued by the government or organization. Therefore, the Capital Projects Fund should credit the account 'Other financing source—long-term debt issued' to record the issuance of bonds.