Which Entry Would Be Recorded in the Debt Service Fund

question 83

Multiple Choice

Which entry would be recorded in the Debt Service Fund?

• A) Ordinary property taxes of $420,000 are levied by the Village of Amazon. Of this total amount 3% are expected to be uncollectible.
• B) Land is purchased for a new jail at a cost of $550,000.
• C) $783,000 is transferred from the General Fund for the payment due on the jail fund serial bonds.
• D) During the year, the State notified the Village of Amazon that $225,000 in motor fuel taxes will be awarded; $170,000 was received in cash and the remainder (due from the state) should be received within 30 days of the end of the fiscal year.

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Definitions:

Additional Value

The extra worth created by an investment, project, or action beyond the initial cost or investment.

Price Premium

The additional amount that a consumer is willing to pay for a product or service over its basic cost, often due to perceived superior value.

Market Value

The existing cost for buying or selling an asset or service in the marketplace.

Book Value

The value of an asset according to its balance sheet account balance, taking into account the cost of the asset minus accumulated depreciation.