Advanced refunding

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Record the following simple transactions in the Debt Service Fund of Ledford County.

 

1. The county issued $50,000,000 of refunding bonds at par to provide most of the financing to refund $60,000,000 of outstanding bonds.

 

2. The county transferred $5,000,000 from the General Fund to the fund from which the outstanding bonds are to be defeased.

 

3. The county paid $55,000,000 into an irrevocable trust established in a manner that defeased in substance the $60,000,000 of previously outstanding bonds.

 

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