2. Prepare entries to record the following transactions related to acquisition of capital assets by a county. The county does not use encumbrance accounting.

a. The county issues general obligation bonds in the amount of SAR 900,000, receiving cash for the full face amount of the bonds. The cash will be used to buy capital assets.

b. The county buys a prefabricated building for SAR 750,000, using part of the bond proceeds. The building is delivered and the invoice for the building is approved.

c. The invoice approved in b. is paid.

d. The General Fund transfers cash of SAR 55,000 to another fund in anticipation of the payment of the first installment of interest (SAR 30,000) and principal (SAR 25,000) on the debt.

e. The first installment of debt service on bonds issued in (a) becomes due and payable.

f. Debt service on the bonds issued in a. is paid.

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