Compare and contrast how expenditures are controlled in the general fund and in debt service funds then explain why differences would occur 2017 by custom-essay. Definition of debt service fund: reserve established to service interest and principal payments on short- and long-term debt also called a debt service reserve fund, or sinking fund dictionary term of the day articles subjects. Cpa exam questions always assume that these transactions are recorded in the capital projects or debt service funds, respectively fund accounting specific characteristics resources are segregated for the purpose of carrying on specific activities or attaining certain objectives. Debt service requirements general obligation warrants fund # 48 fund # 46 fiscal city school total total year principal interest total principal interest total principal interest p & i.
Debt service funds limited time offer at lots of essayscom we have made a special deal with a well known professional research paper company to offer you up to 15 professional research papers per month for just $2995. Debt service is the act of making interest and principal payments on debt how it works (example): for example, let's say company xyz borrows $10,000,000 and the payments work out to $14,000 per month. Where a debt security in the mutual fund's portfolio has defaulted on an interest payment, the mutual fund must classify it as a npa at the end of a quarter after the due date of payment.
The debt service fund is a governmental type fund and shares many of the basic characteristics of governmental funds however, the nature of its transactions and the activities it accounts for make it unique. The minus numbers reveals that wal-mart has a capital deficiency this means that the company has no resources to redesign and improve the settings of its operations for several of the following years. Debt service is the cash that is required to cover the repayment of interest and principal on a debt for a particular period if an individual is taking out a mortgage or a student loan, the. We are the premier essay writing service that offers incomparable rates and quality we can do the same custom essay, questions, accounting problems, dissertation, project proposal, term papers, research papers, and other scholarly works upon your request.
Debt service funds account for resources segregated to pay interest on tax-supported general long-term debt and special assessment long-term debt, and to repay such debt when due long-term debt service payable from revenues of enterprises is accounted for by enterprise funds. Purpose of dsfs to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest required only if legally mandated, or. Debt service funds - used to account for the accumulation of resources that are restricted, committed or assigned for, and the payment of, general long-term debt principal and interest.
If so, does the government maintain a debt service fund to account for the resources to service the debt 5 did the government issue additional long-term debt to support governmental activities during the year. State and local government debt congressional research service summary the financial consequences of the recession that spanned from december 2007 through june. A debt service fund holds monies to pay interest, principal, and other fees associated with short- and long-term debt some entities may be required to establish such funds before they can take on debt obligations.
Question 1 the resources to service all general long-term debts of the governmental entity are typically accounted for in debt service funds 2. General fund and debt service funds a general fund of a public sector is the vehicle that is used to account for all funds that are usually not assigned to special funds.
In this essay, debt service is defined as the repayment of principal and interest on loans to sovereign entities such as cities and nation-states. The general fund also transferred to the debt service funds cash in the amount of $1,662,000 for the recurring payment of principal and interest (17) all required legal steps were accomplished to increase appropriations by the net amount of $212,000. A special revenue fund is an account established by a government to collect money that must be used for a specific project. 6-3 learning objectives (cont'd) describe the reasons for statutory debt limits and explain the terms debt margin and overlapping debt explain the purpose and types of debt service funds.