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Question - A Debt Service Fund is created to pay $1,000,000, 10-year, 5% bonds which were issued on April 1, 2015. Interest is payable each April 1 and October 1 and $100,000 of principal is paid each April 1 beginning April 1, 2016. The General Fund transfers the required cash payments each year to the Debt Service Fund.
What dollar amount is transferred to the Debt Service Fund for 2015 and what account does the Debt Service Fund credit?
A. $25,000 Revenue
B. $50,000 Other Financing Sources
C. $50,000 Revenue
D. $25,000 Other Financing Sources
What were total EXPENDITURES for the Debt Service Fund in 2017?
A. $0
B. $50,000
C. $145,000
D. $142,500
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