During 2019, a county debt service fund receives $5,000,000 from the general fund for budgeted payment of principal and interest on general obligation bonds. The debt service fund makes $4,000,000 in interest and $1,000,000 in principal payments.
During 2019, a county debt service fund receives $5,000,000 from the general fund for budgeted payment of principal and interest on general obligation bonds. The debt service fund makes $4,000,000 in interest and $1,000,000 in principal payments.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
During 2019, a county debt service fund receives $5,000,000 from the general fund for budgeted payment of principal and interest on general obligation bonds. The debt service fund makes $4,000,000 in interest and $1,000,000 in principal payments.
How is this reported on the debt service fund’s 2019 operating statement?
| a. |
Expenditures, $4,000,000; revenues, $5,000,000 |
|
| b. |
Expenditures, $4,000,000; other financing sources, $5,000,000 |
|
| c. |
Expenditures, $5,000,000; other financing sources, $5,000,000 |
|
| d. |
Expenditures, $5,000,000; revenues $5,000,000 |
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