Notice was given that the general fund had paid $120,000 in interest due on $800,000 of 8 percent, tenyear bonds and on $500,000 of 9 percent serial bonds. In addition, the general fund deposited $250,000 in a debt service fund for retirement of general bonded debt.

Instructions:

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Record entries made in the general fund to pay interest and to make annual payments to the debt service fund. Record entries made in the debt service fund to show receipt from the general fund. Record the effect of interest payment and the principal of debt payment to the debt service fund.