At the start of 2019, Crotons Debt Service Fund had no assets or liabilities. Prepare appropriate journal entries to record these transactions in the Debt Service Fund and where appropriate, in the General Fund. (We suggest you post opening balances and the journal entries to general ledger T-accounts.) (I have included account names).

1. The General Fund transferred $1,200 cash to the Debt Service Fund.
2. The first installment of principal and interest on the bonds sold in Part C (1) came due for payment.
3. The principal and interest due for payment were paid.
4. Debt service on bonds sold by Croton in previous years came due and was paid. Principal and interest payments on those bonds were $600 and $470, respectively.

Note: In the Fund column, select the appropriate fund in which the journal entry is recorded (General Fund: GF or Debt Service Fund: DSF).

Ref. Fund Description Debit Credit 1 To record transfer out to Debt Service Fund. A A To record receipt of transfer funds. Expenditures - interest 2 A Matured interest payable 3 Matured interest payable - 4 Expenditures - interest A Matured interest payable - To record maturing of debt service. Matured interest payable A To record payment of debt service. Cash Due from Debt Service Fund Due to General Fund Expenditures - bond principal payment Mature bond principal payable Transfer in from General Fund Transfer out to Debt Service Fund