As of May 30,2009,the debt service fund of Cody had accumulated $52,000 of assets in a debt service fund to pay the principal of its currently maturing serial bonds.On June 1,2009,$50,000 of serial bonds matured and were paid with the resources accumulated in the debt service fund.In Cody's debt service fund,Matured Bonds Payable was debited for $50,000 and:

Question

Quizplus · Accepted Answer

When the $50,000 of serial bonds matured and were paid with the resources in the debt service fund, Cody's debt service fund would have debited Matured Bonds Payable for $50,000, as stated in the problem. The credit would therefore have to go to Cash, since that is the account from which the payment was made. Therefore, the correct choice is A) Cash was credited for $50,000.

As of May 30,2009,the Debt Service Fund of Cody Had