On July 1, 2005, the Town of Warren issued $600,000 face amount of three-year, 9% special assessment bonds, payable $200,000 a year plus interest, at a 10% yield rate, to finance a street improvement project. The town was “obligated in some manner” for the bonds.

Prepare journal entries on July 1, 2005, to record the foregoing transaction for all Town of Warren funds or voluntarily maintained account groups affected. Identify the funds or account groups.