Answer: General fund: 0
Debt service fund: $25,000
Permanent: 0
Explanation:
From the question, we are informed that in the current year, Poplar City paid $5,000 interest and $20,000 principal on its outstanding general obligation bonds and that the payment was made from a debt service fund using cash transferred earlier the same year from the general fund.
The city report the expenditures in the following way:
General fund: 0
Debt service fund: $25,000
Permanent: 0
The debt service funds is simply the addition of $20,000 principal and the $5000 interest.
