Exam 8: Debt Service Funds

Monica City paid $6,000,000 to its fiscal agent to be placed in an irrevocable trust to be used to service an outstanding $5,000,000 general obligation bond issue and those bonds are deemed defeased in-substance. The payment included $3,000,000 of proceeds from the issuance of new general obligation bonds and $3,000,000 that had been accumulated over the years to service the old debt. The city should report the payment to the fiscal agent in its Debt Service Fund as

Apex County advance refunded $3,000,000 of outstanding bonds. $2,500,000 was financed with net refunding bond proceeds and the remaining $500,000 was transferred from the General Fund. The county incurred $35,000 of bond issuance costs when issuing the refunding bonds. Which of the following statements about the reporting of these transactions in the Debt Service Fund is not true? The Debt Service Fund financial statements would report

Calhoun County has a principal and interest payment due in the following fiscal year. However, the county Debt Service Fund has the cash necessary to make the payment in the current fiscal year. Assuming all other requirements have been met and the county plans to make the payment next year, at what point must the principal and interest payment come due in the next year to recognize the expenditure in the current fiscal year?

Principal and interest expenditures on general long-term debt should be recognized in the period

The City of Newport issued $1,500,000 of general obligation refunding bonds at a 2% premium. Bond issuance costs of $15,000 were incurred. The proceeds, net of the premium and bond issue costs, are used in the same period to defease the outstanding bonds. Debt Service Fund Expenditures will be debited for

A Debt Service Fund retires bond principal during the year that is not related to a defeasance. The entry necessary to reflect the principal retirement would be

A Debt Service Fund should be used to account for debt service on special assessment indebtedness