Question
At the end of the fiscal year, a ci ty must make a $10,000 payment on its bonds payable account. Funds will be transferred from
At the end of the fiscal year, a ci ty must make a $10,000 payment on its bonds payable account. Funds will be transferred from the general fund to the debt service fund for the amount. The funds have not been transferred at th is time. Which accounting entry accurately reflects this transaction from the debt service fund's perspective? A. Debit cash: $10,000; credit other financing uses-transfers out from the general fund: $10,000 B. Debit cash: $10,000; credit other financing uses-transfers in from the general fund: $10,000 C. Debit due from the general fund : $10,000; credit other financing sources-transfers out from the general fund: $10,000 D. Debit due from the general fund : $10,000; credit other financing sources-transfers in from general fund: $10,000
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