Flora City is accumulating financial resources that are legally restricted to payments of general long-term debt principal and interest maturing in future years.At year-end,$7,000,000 has been accumulated for principal payments,and $2,200,000 has been accumulated for interest payments.These restricted funds should be accounted for in the $\begin{array}{lll}
& \underline {\text { General Fund }} & \underline {\text { Debt Service Fund }} \
a) & \$ 0 & \$ 9,200,000 \
b) & \$ 9,200,000 & \$ 0 \
c) &\$ 2,200,000 & \$ 7,000,000 \
d) &\$ 7,000,000 & \$ 0 \
\end{array}$

Question

Flora City is accumulating financial resources that are legally restricted to payments of general long-term debt principal and interest maturing in future years.At year-end,$7,000,000 has been accumulated for principal payments,and $2,200,000 has been accumulated for interest payments.These restricted funds should be accounted for in the $\begin{array}{lll}
&  \underline {\text { General Fund }} &  \underline {\text { Debt Service Fund }} \
a) & \$ 0 & \$ 9,200,000 \
b) & \$ 9,200,000 & \$ 0  \
c) &\$ 2,200,000 & \$ 7,000,000  \
d) &\$ 7,000,000 & \$ 0  \
\end{array}$

Quizplus · Accepted Answer

The Answer of Flora City is accumulating financial resources that are legally restricted to payments of general long-term debt principal and interest maturing in future years.At year-end,$7,000,000 has been accumulated for principal payments,and $2,200,000 has been accumulated for interest payments.These restricted funds should be accounted for in the $\begin{array}{lll}
&  \underline {\text { General Fund }} &  \underline {\text { Debt Service Fund }} \
a) & \$ 0 & \$ 9,200,000 \
b) & \$ 9,200,000 & \$ 0  \
c) &\$ 2,200,000 & \$ 7,000,000  \
d) &\$ 7,000,000 & \$ 0  \
\end{array}$

Flora City Is Accumulating Financial Resources That Are Legally Restricted