Question

A special tax was levied by Downtown City to retire and pay interest on general obligation bonds that were issued to finance the construction of a new city hall. Where are the receipts from the tax recorded?

Answer 1

Based on the question given, receipts from the tax should be recorded in the debt service funds.

Step-by-step explanation:

A special tax was levied by Downtown City to retire and pay interest on general obligation bonds that were issued to finance the construction of a new city hall. Where are the receipts from the tax recorded - Receipts from the tax should be recorded in the debt service funds.