The City of Holbrook transferred $100,000 from the general fund to a debt service fund for payment of interest. The appropriate entry in the debt service fund to record this transfer would be
A) Debit Cash $100,000; Credit Revenue $100,000.
B) Debit Cash $100,000; Credit Reciprocal transfer-in $100,000.
C) Debit Cash $100,000; Credit Fund balance $100,000.
D) Debit Cash $100,000; Credit Nonreciprocal transfer-in $100,000.

Question

Quizplus · Accepted Answer

The transfer from the general fund to the debt service fund is a nonreciprocal transfer, so it should be recorded as a "Nonreciprocal transfer-in" in the debt service fund.

The City of Holbrook Transferred $100,000 from the General Fund