Custodial Fund Transactions

Suppose the City of St. George, Utah, decides to assist residents by installing sidewalks in their neighborhood. Construction will be financed by cash provided from a ten-year, 3 percent, serial bond issue for which the government has no liability. Bonds mature at a rate of $500,000 per year. Area residents are assessed over a ten-year period to cover bond principal and interest payments. Events are as follows:

1. Serial bonds are issued, totaling $5,000,000.

2. Assessments are levied on area residents to cover the first years principal and interest payments.

3. Assessments are collected and the first years bond principal and interest are paid.

Required

Record the above events in a custodial fund.

If a journal entry isn't required for an event, select No entry as your journal descriptions.

Ref.	Description		Debit	Credit
1	AnswerAdditionsAssessments receivableBond proceedsCashDeductionsLiabilities to bondholdersNo entry		Answer	Answer
	AnswerAdditionsAssessments receivableBond proceedsCashDeductionsLiabilities to bondholdersNo entry		Answer	Answer
	To record issuance of serial bonds.
2	AnswerAdditionsAssessments receivableBond proceedsCashDeductionsLiabilities to bondholdersNo entry		Answer	Answer
	AnswerAdditionsAssessments receivableBond proceedsCashDeductionsLiabilities to bondholdersNo entry		Answer	Answer
	To record special assessment levy.
3	AnswerAdditionsAssessments receivableBond proceedsCashDeductionsLiabilities to bondholdersNo entry		Answer	Answer
	AnswerAdditionsAssessments receivableBond proceedsCashDeductionsLiabilities to bondholdersNo entry		Answer	Answer
	To record collection of assessments.
	AnswerAdditionsAssessments receivableBond proceedsCashDeductionsLiabilities to bondholdersNo entry		Answer	Answer
	AnswerAdditionsAssessments receivableBond proceedsCashDeductionsLiabilities to bondholdersNo entry		Answer	Answer
	To record obligation to bondholders.
	AnswerAdditionsAssessments receivableBond proceedsCashDeductionsLiabilities to bondholdersNo entry		Answer	Answer
	AnswerAdditionsAssessments receivableBond proceedsCashDeductionsLiabilities to bondholdersNo entry		Answer	Answer
	To record payment of bond principal and interest.

Please answer all parts of the question.