Question

The City of San Jose built a new city hall and financed construction by issuing bonds due in installments over the next 30 years. The bond principal and interest will be paid by a special tax levied on property in the City. The revenue received from this special tax should be accounted for in which of the following funds?

Answer 1

Debt service fund.

Step-by-step explanation:

A debt service fund is a cash reserve that is used to pay for the interest and principal payments on certain types of debt.