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 Answer Answer Answer Answer 2 Answer Answer Answer Answer Answer Answer 3 Debt service: interest Answer Answer Answer Answer Answer Answer Answer Answer 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