Durwin County issued $200 million in long-term debt to fund major improvements to the countys road and transportation systems. The debt is to be serviced from the proceeds of a specially dedicated property tax. The accompanying statement of revenues, expenditures, and changes in fund balance and balance sheet were taken from its year-end financial report.

Based on the data in the two statements, prepare journal entries to summarize the transactions in which the firm engaged. You should prepare budgetary entries, but need not prepare closing entries.

Darwin County, Debt Service Fund Statement of Revenues, Expenditures, and changes in Fund Balance-Actual and Budget Year Ended December 31 (in thousands)

Actual Budget

Revenues

Property taxes 21,520 20,000

Interest 50 0

Total revenues 21,570 20,000

Expenditures

Principal retirement 6,000 6,000

Interest 12,500 12,500

Total expenditures 18,500 18,500

Excess of revenues over expenditure 3,070 1,500

Other financing Sources (uses)

Nonreciprocal transfer of bond premium from capital project fund 150 0

Excess of revenues and net financing sources over expenditures 3,220 1,500

Fund balance, beginning of year 0 0

Fund balance, end of year 3,220 1,500

Darwin County, Debt Service Fund Balance Sheet As of December 31 (in thousands)

Assets

Cash 70

Investments 1,000

Property taxes receivable 2,150

Total assets 3,220

Fund balance 3,220