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To permit payment of the $25,000 interest payment due on January 1, 2021, the Street Improvement Bond Debt Service Fund received $17,500 from the General Fund. That amount together with available cash balance in the debt service fund will be sufficient to cover the January 1, 2021, interest payment.
Required:
Problem 1: Record the interfund transfer in the debt service fund journal only. This transaction was previously recorded in the General Fund. The transaction has no effect at the government-wide level since it occurs between two governmental funds.
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