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The General Fund Transfers $50,000 Cash to the Debt Service

Question 5

Multiple Choice

The General Fund transfers $50,000 cash to the Debt Service Fund to meet annual interest payments.What entry did the Debt Service Fund prepare?


A) Debit Cash $50,000,Credit Revenue $50,000
B) Debit Cash $50,000,Credit Other Financing Sources-Transfer from General Fund $50,000
C) Debit Encumbrance $50,000,Credit Due to General Fund $50,000
D) Debit Appropriation $50,000,Credit Reserve for Encumbrance $50,000

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