resources that are restricted or otherwise limited to pay the government, including Enterprise fund debt Fund? 24 Whr is the purpose of a Debt Service debt service on all debt of the and short-term debt used to finance General Fund operations a to account for otherwise limited to pay resources that are principal and interest on general long-term debt service on all long-term debt of the government, and also to show how much long-term debt is outstanding to account forshee restrictedorotherwise limited to pay the debt to provide a means of reporting all outstanding long-term debt of the sovenment in a single location 3. 25. A city sells $S million of 20-year general obligation bonds on October 1, 201 Interest on the debt is payable at the rate of5% a year on the unpaid balance of the debi, every six months commencing March 31, 2014. How much should the city report as an interest expenditure in the Debt Service Fund for the calendar year ending December 31, 2013? a. $0 b. $30,000 c. $60,000 d. $120,000 26. What kinds of expenditures are accounted for in Debt Service Funds? only the principal payments on general obligation long-term debt a b. c. only the interest expenditures on general obligation long-term debt both principal payments and interest expenditures on general obligation long-term debt d. all debt service on all governmental debt, regardless of the purpose of the debt 27. A city accounts for its capital acquisitions using encumbrances. When the city enters into a contract to acquire equipment, what journal entry should it make? a. debit expenditures - capital outlay; credit vouchers payable b. debit encumbrances; credit budgetary fund balance reserved for encumbrances debit equipment; credit vouchers payable debit encumbrances; credit appropriations-equipment c. d