(Journal entries, financial statements, and closing entries for a Debt Service Fund)

Following is a trial balance for the City of Dolby and the transactions that relate to the Debt Service Fund:

1. The city council of Dolby adopted the budget for the Debt Service Fund for 2004. The estimated revenues totaled $\$ 1$ million, the estimated other financing sources totaled $\$ 500,000$, and the appropriations totaled $\$ 202,000$.
2. The receivable from the General Fund for $\$ 500,000$ was recorded.
3. To provide additional resources to service the bond issue, a tax was levied upon the citizens. The total levy was $\$ 1$ million, of which $\$ 975,000$ was expected to be collected. (Assume the allowance method is used.)
4. Taxes of $\$ 780,000$ were collected.
5. Receivables of $\$ 5,000$ were written off.
6. Income received in cash from investments totaled $\$ 5,000$.
7. Taxes of $\$ 150,000$ were collected.
8. The liability of $\$ 50,000$ for interest was recorded, and that amount of cash was transferred to the fiscal agent.
9. The fiscal agent reported that $\$ 45,000$ of interest had been paid.
10. The fiscal agent was paid a fee of $\$ 1,000$.
11. Investment income of $\$ 3,000$ was received in cash.
12. The liabilities for interest in the amount of $\$ 50,000$ and principal in the amount of $\$ 100,000$ were recorded, and the total was transferred to the fiscal agent.
13. The fiscal agent reported that interest of $\$ 51,000$ and principal of $\$ 95,000$ had been paid.
14. Investment revenue of $\$ 1,000$ was accrued.
15. The amount due was collected from the General Fund.
16. Investments totalling $\$ 1$ million were purchased.
Required: 1. Prepare all the journal entries necessary to record these transactions on the books of the Debt Service Fund.
2. Prepare a trial balance for the Debt Service Fund as of December 31, 2004.

3. Prepare a statement of revenues, expenditures, and changes in fund balance for 2004 and a balance sheet as of December 31, 2004, for the Debt Service Fund.
4. Prepare closing entries for the Debt Service Fund.

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City of Dolby Debt Service Fund Bridge Bonds Fund Trial Balance December 31, 2003 Debit Credit Cash $60,000 Investments 30,000 Unreserved fund balance $90,000 $90,000 $90,000