A Debt Service Fund collects $1,000,000 in current-year property taxes that are dedicated to the payment of debt service principal and interest during the year. It also expects to collect an additional $60,000 of dedicated current-year property taxes during the first 60 days of the next fiscal year. The General Fund transferred $250,000 to the Debt Service Fund during the current year. Earnings on investments in the Debt Service Fund for the current year were $28,000. How much revenue should the Debt Service Fund report for the current year?

Question

Quizplus · Accepted Answer

The Debt Service Fund should report revenues of $1,088,000. This is comprised of current-year property tax collections ($1,000,000); property taxes expected to be collected in first 60 days of next fiscal year ($60,000); and earnings on investments ($28,000).

A Debt Service Fund Collects $1,000,000 in Current-Year Property Taxes