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Seagraves City uses a debt service fund to make payments on its general obligation bonds. During the fiscal year ended June 30, 2021, the debt

Seagraves City uses a debt service fund to make payments on its general obligation bonds. During the fiscal year ended June 30, 2021, the debt service fund pays $85,000 of principal on the bonds and $15,000 of interest on the bonds. What is the income statement effect (i.e., change in fund balance) as a result of the transact

Increase of $15,000

Decrease of $100,000

Increase of $100,000

None of these

Decrease of $15,000

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