21) Which of the following statements is not true for debt service funds?

A. Special assessment debt for which the government has some obligation is paid through the debt service fund.

B. Interest payable may be reported as a liability of the debt service fund.

C. Bond principal is shown as a liability of the debt service fund only when that principal is due and payable.

D. All tax-supported bond principal is shown as a liability of the debt service fund.

22) Which of the following debt service fund accounts would not be closed at the end of each fiscal year?

A. Estimated Revenues.

B. Fund Balance.

C. Revenues.

D. ExpendituresBond Interest.

23) The City of Lake Worth issued $20 million of tax-supported bonds at 102 to finance a new prison. Upon issuance, how will the premium be recorded?

A. A $400,000 revenue to the capital projects fund.

B. A $400,000 revenue to the debt service fund.

C. A $400,000 expenditure in the debt service fund.

D. A $400,000 other financing source to the debt service fund.

24) On June 1, 2020, Bronx Town levied special assessments in the amount of $500,000, payable in 10 equal annual installments beginning on June 30, 2020. The assessment installments are intended to pay principal and interest on special assessment bonds for which the town has pledged its full faith and credit should assessments be insufficient. Assuming no allowance for uncollectible receivables, the journal entry in the debt service fund on June 1, 2020 would include:

A. A debit to Assessments ReceivableCurrent for $500,000.

B. A debit to Assessments ReceivableCurrent for $50,000.

C. A credit to Revenues for $500,000.

D. No journal entry is made in the debt service fund because special assessments are

used.

25) Which of the following financial statements are required for a Debt Service Fund?

A. Statement of net position only.

B. Statement of revenues, expenditures, and changes in fund balances only.

C. Balance sheet and statement of revenues, expenditures, and changes in fund balance.

D. Balance sheet, statement of revenues, expenditures, and changes in fund balance, and

statement of cash flows.

26) The City of Granville fiscal year ends on December 31. On October 1, 2020, the city issued $1,000,000 of 6%, 10-year term bonds with semiannual interest payments due on April 1 and October 1 each year, beginning on April 1, 2021. What amount of expenditures should the city recognize in its debt service fund for the years 2020 and 2021?

A) $60,000 in 2020; $60,000 in 2021.

B) $30,000 in 2020; $60,000 in 2021.

C) $15,000 in 2020; $6,000 in 2021.

D) $0 in 2020; $60,000 in 2021.