Entries Required for Refunding Bond Issues Full Accrual Funds – (All entries made in the Ledger.) To retire the old issue: Debit 2601 LT Bonds Payable—Non Current Debit 2602 Premium on Bonds Payable (if applicable) Credit 1104 Cash (for amount going to escrow) Credit 2616 Discount on Bonds Payable (if applicable) Debit/ 1908/ Refunding eferred utflows or Refunding eferred Credit 2617 nflows1 1This amount is the difference between the reacquisition price (credit to 1104) and the net carrying amount (net of the debits to 2601 and 2602 and the credits to 2616). To record amortization of the Deferred Interest Expense Refunding in – subsequent years: 69102 Bond Interest Debit/ Credit Debit/ 1908/ Refunding eferred utflows or Refunding eferred nflows Credit 2617 The new issue recorded as .
Entries Required for Refunding Bond Issues – Full Accrual Funds (All entries made in the Ledger.) To retire the old issue: Debit 2601 LT Bonds Payable—Non Current Debit 2602 Premium on Bonds Payable (if applicable) Credit 1104 Cash (for amount going to escrow) Credit 2616 Discount on Bonds Payable (if applicable) Debit/ Credit 1908/ 2617 Refunding eferred utflows or Refunding eferred nflows1 1This amount is the difference between the reacquisition price (credit to 1104) and the net carrying amount (net of the debits to 2601 and 2602 and the credits to 2616). To record amortization of the Deferred Interest Expense – Refunding in subsequent years: Debit/ Credit 69102 Bond Interest Debit/ Credit 1908/ 2617 Refunding eferred utflows or Refunding eferred nflows The new issue recorded as .
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