The City of Amarillo is authorized to issue $3,600,000, 5 percent regular serial bonds in 2017 for the construction a new exit off the interstate highway within city limits. The bonds mature in equal annual amounts beginning on January 1, 2018 for 10 years and pay interest on January 1 and July 1. The city is required to use all accrued interest and premiums to service the debt. The funds to pay the interest will be transferred from the General Fund. The countys fiscal year end is December 31.

	Transaction Fund General Journal Debit Credit 1. Record the budget transaction. 1 Debt Service Fund

b.

The bonds were sold on February 1, 2017 at 102. Prepare the journal entries needed to record the issuance of the bonds, including the entries required in the debt service fund and any entries required in the governmental activities general ledger at the government-wide level. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) Transaction Fund General Journal Debit Credit 1. Record the premium and interest on issuance of bonds 1 Debt Service Fund Governmental Activities c. Prepare the entry required to reflect the transfer of funds from the General Fund in the debt service fund. (You may ignore the entry in the General Fund.) (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) Transaction Fund General Journal Debit Credit 1. Record the transfer of funds. 1 Debt Service Fund

d.

Prepare the journal entries needed to record first interest payment made on July 1, including the entries required in the debt service fund and any entries required in the governmental activities general ledger at the government-wide level. Assume that the straight-line method is used for premium amortization. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) Transaction Fund General Journal Debit Credit 1. Record the first interest payment made on July 1. 1 Debt Service Fund Governmental Activities