Answer:
Dr Cash $9,800,000
Dr Other financing use—bond issue discount $200,000
Cr Other financing source—long-term debt issued $10,000,000
Explanation:
Journal entries
Dr Cash $9,800,000
Dr Other financing use—bond issue discount $200,000
Cr Other financing source—long-term debt issued $10,000,000
$10,000,000 -$9,800,000
=$200,000
Therefore since $10,000,000 face value of general obligation bonds for $9,800,000 we are to debit Cash $9,800,000 as well as Other financing use—bond issue discount $200,000 which is the difference between $10,000,000 -$9,800,000 while we credit
Other financing source—long-term debt issued at $10,000,000
