The General Fund of the City of Castle Rock Transfers

question 28

Multiple Choice

The General Fund of the City of Castle Rock transfers $115,000 to the debt service fund for a $100,000 principal and $15,000 interest payment. The recording of this transaction would include:

• A) A debit to Interest Expenditures in the General Fund.
• B) A debit to Interest Expenditures in the governmental activities accounts.
• C) A credit to Other Financing Sources - Interfund Transfers In in the debt service fund only.
• D) A credit to Other Financing Sources - Interfund Transfers In in both the debt service fund and governmental activities accounts.