Question

Listed below are selected transactions from a Loudon County Debt Service Fund (all amounts are in thousands of dollars).

1. The remaining funds of a Capital Projects Fund, $2,000, were transferred to the Debt Service Fund to be used in the repayment of debt and interest on that debt that was issued to finance and expansion of the transit system.
2. The county General Fund transferred $9,200 to the Debt Service Fund to provide financing for principal, interest, and fiscal agent fees for debt service transactions during the year. $6,700 of the transfer from the General Fund and all of the transfer from the CPF were invested.

Record the above transactions in the Debt Service Fund.

Answer 1

LOUDON DEBT SERVICE FUND

Debit Service Fund Account

Capital project fund $2,000,000

County General fund 9,200,000

Investment 6,700,000

Balance c/d 4,500,000 -

11,200,000 11,200,000

Step-by-step explanation: