[ayr92766]

Your city has decided to build a new library. The projected cost is $2 million. A bond issue for $1.2 million has been authorized, and the remainder is supposed to come from a contribution of $800,000 from the general fund. The bonds sold for $1.3 million, a premium of $100,000. Create the required journal entries for the following transactions:

The budget for the library
The payment and receipt of funds from the general fund
The issuance of the bonds
Assume that the premium remained in the capital projects fund.
Identify all of the funds required for these entries.
Discuss how the bond premium could be disposed.

In general terms, compare and contrast how expenditures are controlled in the general fund and in debt service funds. Explain why differences would occur.

OK - I completely understand the discussion portion; it's the 1st part that is confusing me. Pretty sure the journal entries for the budge part would be:

Estimated revenues 800,000 (Debit)
Estimated other financing 1,200,000 (Debit)
Appropriations 2,000,000 (Credit)
To record budget

It's these 2 that are confusing me - Journal entries for:
The payment and receipt of funds from the general fund
The issuance of the bonds