Arlington Has a Debt Service Fund Which It Uses to Pay

question 73

Multiple Choice

Arlington has a debt service fund which it uses to pay the principal and interest on its $2,000,000 of general long-term debt.Interest at 5 percent is due on October 1 and April 1.On October 1,20X8,and April 1,20X9,Arlington's debt service fund paid $50,000 of interest due on its bonds.On the balance sheet prepared on June 30,20X9,for Arlington's debt service fund,interest payable should be reported at:

• A) $0.
• B) $16,667.
• C) $25,000
• D) $50,000.

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