Question

Can someone please assist with the following journal entries? The fund or activity type is listed first.

A $6,200,000 issue of construction bonds were sold at par by the capital projects fund. Debt issuance costs included administrative fees of $55,800 and prepaid insurance costs of $6,200.

1. Capital Projects Fund: Record the issue of construction bonds.
2. Capital Projects Fund: Record the debt issuance costs.
3. Governmental Activities: Record the issue of construction bonds.
4. Governmental Activities: Record the debt issuance costs.

Answer 1

a	Capital project fund	Record the issue of construction bonds
		Cash	$ 6,200,000
		Other Financing Sources—Proceeds of Bonds		$ 6,200,000
b	Capital project fund	Record the debt issuance costs
		Expenditures	$      62,000
		Cash (55800+6200)		$      62,000
c	Governmental activities	Record the issue of construction bonds
		Cash	$ 6,200,000
		Bonds payable		$ 6,200,000
d	Governmental activities	Record the debt issuance costs
		Bonds issuance Expenses	$      55,800
		Prepaid insurance	$        6,200
		Cash		$      62,000