Refund the outstanding bonds


The town of Newport issued $1,500,000 of general obligation refunding bonds at a 2% premium. Bond issuance costs of $15,000 were incurred. The proceeds, net of the premium, are being used to refund the outstanding bonds. Debt Service Fund Expenditures will be debited for:

A) $1,470,000.

B) $1,455,000.

C) $30,000.

D) $15,000.

E) $1,500,000.

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Accounting Basics: Refund the outstanding bonds
Reference No:- TGS064683

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