Bond issue cost

  • Creator
    Topic
  • #1535281
    kris
    Participant

    I got a question about Bond issue cost
    If Bond payable 100
    Bic 10
    Issued at 110
    How would it be journalized?

    Cash 110 / bp 90
    / pre 20 or,

    Cash 110 / bp 100
    / pre 10 or,

    Cash 110 / bp 100
    / cash 10

    Also, in reconciliation from Gov fund to Gov wide, how would Bond Issue Cost be adjusted? As far as I know, in gov fund BIC is expenditure, but in gov wide is BIC an asset like the old GAAP? Or a deduction from Bond like the rule?

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