Prepare journal entries required by a debt service fund to record the following transactions:
a. On January 2, a $5,000,000, 6%, 10-year general obligation serial bond issue is sold at 99. Interest is payable annually on December 31, along with one-tenth of the original principal.
b. At year-end, the first serial bond matures, along with interest on the bond issue.
c. The general fund transfers cash to meet the matured items.
d. A check for the matured items is sent to First Bank, the agent handling the payments.
e. Later, the bank reports that the first serial bond has been redeemed. One check for interest of $9,000 was returned by the post office because the bond owner had moved. The bank will search for the new address.