A county uses a debt service fund to account for events related to a $50,000,000 2.5% general obligation serial bond issue used to finance construction of a new courthouse. For the current year, principal payments of $5,000,000 and interest payments of $1,250,000 are scheduled. The payments are financed by a transfer from the general fund. In addition, the courthouse capital projects fund transferred $500,000 of excess cash to the debt service fund. The debt service fund invested this cash in securities. Investment income, received in cash, was $10,000. The securities have a fair value of $499,000 at year-end.
Required
Prepare the debt service fund operating statement for the year.

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The Answer of A county uses a debt service fund to account for events related to a $50,000,000 2.5% general obligation serial bond issue used to finance construction of a new courthouse. For the current year, principal payments of $5,000,000 and interest payments of $1,250,000 are scheduled. The payments are financed by a transfer from the general fund. In addition, the courthouse capital projects fund transferred $500,000 of excess cash to the debt service fund. The debt service fund invested this cash in securities. Investment income, received in cash, was $10,000. The securities have a fair value of $499,000 at year-end.
Required
Prepare the debt service fund operating statement for the year.

A County Uses a Debt Service Fund to Account for Events