Calhoun County makes annual transfers from the general fund to the debt service fund to pay principal and interest on long-term debt.
-When the county makes the transfer the entry in the debt service fund should be
A) Debit Cash; Credit Revenue.
B) Debit Cash; Credit Other financing sources-nonreciprocal transfer-in.
C) Debit Cash; Credit Interest payable.
D) Debit Cash with fiscal agent; Credit Other financing sources-nonreciprocal transfer-in.

Question

Quizplus · Accepted Answer

Transfers from the general fund to the debt service fund to pay principal and interest on long-term debt are recorded as "Other financing sources-nonreciprocal transfer-in" in the debt service fund, reflecting the inflow of resources from another fund without a direct exchange.

Calhoun County Makes Annual Transfers from the General Fund to the Debt