Chapter 7, Problem 17.11EP

The City of Tutland issued $10 million, 6 percent, 10-year bonds at 101 to finance refurbishment of its water utility fund equipment. The bond issuance is recorded in the water utility enterprise fund as

1. a.      Other financing sources of $10.1 million.
2. b.      Revenues of $10.1 million.
3. c.       Bonds payable of $10.1 million.
4. d.      Bonds payable of $10 million and premium on bonds payable of $100,000.