The journal entry for the Debt Service fund upon the receipt of money from the General Fund would be:

Question

Quizplus · Accepted Answer

The Debt Service fund receives money from the General Fund as a transfer in, so the journal entry would be a debit to Cash (for the amount received) and a credit to Transfer In (to record the transfer from the General Fund). Therefore, choice C, which is a debit to Cash and credit to Transfer In, is the correct answer. Choice A is incorrect because Transfers Payable refers to transfers to be made in the future, not transfers already received. Choice B is incorrect because Transfer In is the account that should be credited, not debited. Choice D is incorrect because Transfer Out refers to transfers made from the Debt Service fund to another fund, not transfers received from another fund.

The Journal Entry for the Debt Service Fund Upon the Receipt