A government retired $5,000,000 of outstanding general obligation bonds when due. The government used $3,000,000 of proceeds from new bonds issued to provide resources for retiring the old bonds. The other $2,000,000 had been accumulated from tax and interest revenues over the years that the old bonds were outstanding. The government should report this transaction in its Debt Service Fund as

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The retirement of the $5,000,000 of outstanding general obligation bonds was funded with $3,000,000 from the issuance of new bonds (which is reported as other financing uses) and $2,000,000 from accumulated tax and interest revenues (which is reported as an expenditure). Therefore, the transaction should be reported as other financing uses of $3,000,000 and expenditures of $2,000,000 in the Debt Service Fund.

A Government Retired $5,000,000 of Outstanding General Obligation Bonds When