A general fund makes payments to the debt service fund, as follows:
•$4,000,000, as legally authorized in the budget, for payment of principal due on general obligation debt
•$2,000,000, as legally authorized in the budget, for payment of interest due on general obligation debt
•$500,000 temporary transfer, to be paid back when the debt service fund receives funding from other sources
The above transactions reduce the general fund's fund balance-unassigned by what amount?

Question

Quizplus · Accepted Answer

The legally authorized transfers are other financing uses, deducted from fund balance:
$4,000,000 + $2,000,000 = $6,000,000
The temporary transfer is a receivable and does not affect fund balance.

A General Fund Makes Payments to the Debt Service Fund