On the due date for bond interest,the debt service fund journal entry (or entries)will include:

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The debt service fund is responsible for making interest payments on the bonds issued by a government entity. Therefore, on the due date for bond interest, the debt service fund journal entry will include a debit to Expenditures-Bond Interest to record the payment of interest. There should not be a debit to Bonds Payable as this account represents the amount of outstanding bonds and is not affected by the payment of interest. There should also not be a debit to Interfund Transfers Out or Interest Expense as these accounts are not directly related to the payment of bond interest.

On the Due Date for Bond Interest,the Debt Service Fund