Exercise 6-20 (Static) Budgeted and Actual Debt Service Transactions [LO 6-2, 6-5] The City of Amarillo is authorized to Issue $8,000,000, 3 percent regular serial bonds in 2023 for the construction of a new exit off the Interstate highway within city limits. The bonds mature in equal annual amounts beginning on January 1, 2024, for 10 years and pay Interest on January 1 and July 1. The city is required to use all accrued interest and premiums to service the debt. The funds to pay the Interest will be transferred from the General Fund. The county's fiscal year-end Is December 31. d. Prepare the journal entries needed to record the first Interest payment made on July 1, including the entries required in the debt service fund and any entries required in the governmental activities general ledger at the government-wide level. Assume that the straight-line method is used for premium amortization. (If no entry is required for a transaction/event, select "No Journal Entry Required" In the first account field. Do not round Intermediate calculations.) Transaction Fund / Governmental Activties 1. Record the first interest payment made on July 1. 1 Debt Service Fund General Journal Expenditures-Bond Interest Cash Governmental Activities Interest Payable Premium on Bonds Payable Interest Expense Cash Debit Credit f. Prepare the budgetary entries for 2023 assuming that the bonds were scheduled to be issued on January 2. Assume that the January 1, 2024, principal and Interest payments will be included in the 2023 budget. Prepare the entry required to reflect the transfer of funds from the General Fund to the debt service fund. (You may Ignore the entry in the General Fund.) (If no entry is required for a transaction/event, select "No Journal Entry Required" In the first account field. Do not round intermediate calculations.) Transaction Fund 1. Record the budget transaction. 1 Debt Service Fund Expenditures-Interest Cash 2. Record the transfer of funds. 2 Debt Service Fund General Journal Debit Credit