A. Alor Bintang City Council is a local government in State of Kedah. The Council uses accrual basis of accounting and has maintained several funds, namely, general fund, debt service fund and capital projects fund. In addition, the Councils accounts are prepared in accordance with the Malaysian Public Accounting Standards (MPSAS) and Local Government Act 1976. The following are transactions that occurred during January, 2021.

1. The City Council approves an annual budget with estimated revenues of RM1,900,000 and estimated expenditures of RM1,700,000.

2. Property taxes of RM1,500,000 are levied with 3% is estimated to be uncollectible.

3. Materials and supplies to be used in daily operation are ordered for RM170,000.

4. A transfer of RM70,000 is made from the general fund to the debt service fund.

5. Materials and supplies are received (see transaction number 3) with an invoice for RM172,000.

6. The City Council borrowed RM120,000 on a 90-day note (5% interest) from a bank.

7. The City Council receives a RM20,000 grant for repairing a public park from the State Government. The grant has not yet earned.

REQUIRED: Prepare relevant journal entries for the above transactions.