Interest payments on bonds issued for capital projects are recorded in which account?

Question

Quizplus · Accepted Answer

Interest payments on bonds issued for capital projects are recorded in the Debt Service Fund, which is used to account for the payment of principal and interest on long-term debt incurred for capital projects. The Capital Project Fund is used to account for the financial resources used in the acquisition or construction of major capital facilities or improvements. The Long Term Asset Group is not an official accounting term. The General Fund is used to account for the general operating activities of a government entity.

Interest Payments on Bonds Issued for Capital Projects Are Recorded