The City of San Jose built a new city hall and financed construction by issuing bonds due in installments over the next 30 years.The bond principal and interest will be paid by a special tax levied on property in the city.The revenue received from this special tax should be accounted for in which of the following funds?

Question

Quizplus · Accepted Answer

The revenue received from the special tax levied on property for the purpose of paying off the bond principal and interest should be accounted for in the Debt service fund. This fund is specifically created to account for the resources set aside for the repayment of long-term debt obligations.

The City of San Jose Built a New City Hall