E11.6 The City of Yuma, Arizona accounts for debt service related to Debt Service Fund Transactions its $10,000,000 face value, 5% general obligation term bonds, issued July 1, 2016, 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 2017 The debt service fund budget called for $1,250,000 in transfers from the general fund, $20,000 in income on investments, and appropriations for the two semiannual interest payments The general fund transferred $ ! 250,000 to the debt service fund on August 15. The debt service fund invested the cash The debt service fund liquidated investments carried at $300,000 for $315,000 and made the Decem- ber 31 interest payment The debt service fund liquidated investments carried at $270,000 for $260,000 and made the June 30 interest payment. 1. 2. 3. 4. 5. Dividend and interest income for the year, received in cash, was $45,000 6. At June 30,2017, the debt service fund's investments had a fair value of $660,000 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 Prepare the debt service fund's statement of revenues, expenditures, and changes in fund balances and the year-end balance sheet for fiscal 2017. b. E11.6 The City of Yuma, Arizona accounts for debt service related to Debt Service Fund Transactions its $10,000,000 face value, 5% general obligation term bonds, issued July 1, 2016, 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 2017 The debt service fund budget called for $1,250,000 in transfers from the general fund, $20,000 in income on investments, and appropriations for the two semiannual interest payments The general fund transferred $ ! 250,000 to the debt service fund on August 15. The debt service fund invested the cash The debt service fund liquidated investments carried at $300,000 for $315,000 and made the Decem- ber 31 interest payment The debt service fund liquidated investments carried at $270,000 for $260,000 and made the June 30 interest payment. 1. 2. 3. 4. 5. Dividend and interest income for the year, received in cash, was $45,000 6. At June 30,2017, the debt service fund's investments had a fair value of $660,000 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 Prepare the debt service fund's statement of revenues, expenditures, and changes in fund balances and the year-end balance sheet for fiscal 2017. b