A Local Government Issued Bonds and Recorded the Event by Debiting

Multiple Choice

A local government issued bonds and recorded the event by debiting cash and crediting Other Financing Source - Proceeds of Bonds and Other Financing Source - Premium on Bonds.What is the worksheet entry when preparing the government-wide statements?

A) Debit Other Financing Sources - Proceeds of Bonds and Other Financing Sources - Premium on bonds and Credit Bonds payable and Premium on Bonds
B) Debit Cash and credit Bonds Payable and Premium on bonds
C) Debit Other Financing Sources - Proceeds of Bonds and Credit Bonds payable and Premium on Bonds
D) No adjustment is necessary