Westbury School Corporation issued $2,000,000 par value of serial bonds on July 1. The bonds will pay 10 percent per year, to be called in blocks of $200,000 every two years, beginning July 31. On July 31, the fund had the following account balances:

The following transactions occurred on July 31:

a. Taxes receivable of $30,000 were collected.

b. $138,000 of investments was converted into cash.

c. Interest payable of $8,000 was paid.

d. Following the corporation board’s directions, the balance in the reserve for debt retirement was transferred to the debt service fund equity account and an appropriation for debt service, principal, was made in the amount of $200,000.

e. An expenditure, debt service, principal, was recorded for $200,000, and the debt service fund assumed the liability for matured bonds payable.

f. A check for $200,000 was issued to the fiscal agent to retire bonds presented for payment.
Instructions:

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Cash $40,000 Taxes receivable 64,000 Estimated uncollectible taxes 32,000 Investments at cost 148,000