General Fund Capital Asset and Long-Term Debt Transactions During the current year, the following transactions were recorded by the general fund of the City of Margate: 1. Acquired a new fire truck costing $3,420,000 in cash. 2. Sold for $75,000 old fire-fighting equipment acquired ten years ago for $750,000. 3. Paid interest and principal on long-term capital debt of $250,000 and $1,000,000, respectively. Required a. Prepare all journal entries made by the City of Margates general fund for the above transactions. Ref. Description Debit Credit 1 Answer Answer 0 Answer 0 Answer Answer 0 Answer 0 2 Answer Answer 0 Answer 0 Answer Answer 0 Answer 0 3 Debt service: interest Answer 0 Answer 0 Answer Answer 0 Answer 0 Answer Answer 0 Answer 0 b. State how each transaction is reported in the general fund financial statements. Transaction Fund financial statement Classification Acquisition of fire truck Answer Answer Sale of old fire-fighting equipment Answer Answer Payment on long-term debt Answer Answer c. Compute the effect of the foregoing on the general fund unassigned fund balance. Use a negative sign with your answer if the effect reduces the fund balance. $Answer 0 Please answer all parts of the question.