City Council voted to construct sidewalks in a in a new neighborhood, assessed the property owners for the cost and issue debt to finance the project.

For the 2021 transactions that follow, prepare journal entries in the Citys Capital Project Fund (if applicable) and/or Debt Service fund (if applicable).

1. On January 1, 2021, the city council assessed the property owners the estimated cost of $8,000,000. The assessments are payable over a five-year period ($1,600,000 per year) with interest at 6 percent annually on the unpaid balance. The first installment is due on December 31, 202
2. The city issued $8,000,000 of five-year 6 percent serial bonds. The bonds were issued at a premium of $200,000 but the city incurred insurance cost of $150,000.
3. The city constructed the sidewalks at a billed cost of $8,000,000.
4. The City collected the first $1,600,000 installment of the assessment, along with $480,000 in interest.
5. The City made one payment of $240,000 interest on bonds. The next payment of interest on the bonds is due in January 2022.