Debt Service Fund Transactions The City of Yurna, Arizona accounts for debt service related to its $10,000,000 face value, 5%% general obligation term bonds, issued July 1, 2019, in a debt service fund. The city's accounting year ends on June 30. Interest on the bonds is due each December 31 and June 30. The following events occur in fiscal 2020: 1. The debt service fund budget called for $1,750,000 in transfers from the general fund, $28,000 in income on investments, and appropriations for the two semiannual interest payments. 2. The general fund transferred $1,750,000 to the debt service fund on August 15. The debt service fund invested the cash. 3. The debt service fund liquidated investments carried at $420,000 for $441,000 and made the December 31 interest payment. 4. The debt service fund liquidated investments carried at $378,000 for $364,000 and made the June 30 interest payment. 5. Dividend and interest income for the year, received in cash, was $63,000. 6. Al June 30, 2020, the debt service fund's investments had a fair value of $924,000. Assume that all debt service fund resources are committed. Required a. Prepare the journal entries to record the above events in the debt service fund. Include necessary closing entries. Debit Service Fund Journal Didicription Debit Credit Estimated other fimarking source ,750,000 Estimated earrings Appropriations 500,000 Fund balance-commitlis 0 1,2/8,000 Cash 1,750,000 Translars in 1,750,000 To mound transfer from General Fund. 1,750,000 Cash 1, 750,000 To record inmindment of transfer. 3. Cash 441 000 Investments 4201,000 Is alured gain un investments To toand liquidation of inveralment Expenditure: interest Cash To toand intend payment. Cash 14,000 To round liquidation of investment. Expenditure: interest Cash To toand intent payment. Cash # 63,000 Investment income 63,600 Unrealized lara un immatureis Closing antrimc Investment income Balued gain un inwailments Unrealund losses or invstatments Estimated other fimarking sources talimated earrings Fund balance-commitlind To close actual against budgeted revenues & other franking sources. Appropriations Expenditure: interest To close actual expenditures against appropriations.b. Prepare the debt service fund's statement of revenues, expenditures, and changes in fund balances and the year-end balance sheet for fiscal 2020. Use negative signs for answers to indicate "losses," "expenditures," and "excess of revenues under expenditures" - if applicable. City of Yuma, AZ Debt Service Fund Statement of Revenues, Expenditures, and Changes in Fund Balances For the Year Ended June 30, 2020 Revenues Investment income $ 0 X Realized gains (losses) Unrealized gains (losses) 0 X Net investment income 0 # Expenditures Debt service: interest 0 X Excess of revenues over (under] expenditures O X Other financing sources (uses) Transfer in 0 * Change in fund balance 0 * Fund balance-beginning Fund balance-ending $ 0 * City of Yuma, AZ Debt Service Fund Balance Sheet June 30, 2020 Assets Fund balance Cash 0 * Fund balance-committed $ 0 * Investments 0 X Total assets $ 0 * Total fund balance 0 *