Journal entries, financial statements, and closing entries for a Debt Service Fund Following are a trial balance and the transactions that relate to the City of Patin Heights Debt Service Fund: CITY OF PATIN HEIGHTS Debt Service Fund Trial Balance December 31, 2021 Debits Credits Cash $60,000.00 Investments 30,000.00 Restricted fund balance $90,000.00 $90,000.00 $90,000.00

1. The city council of Patin Heights adopted the budget for the Debt Service Fund for 2022. The estimated revenues totaled $1,050,000, the estimated other financing sources (a transfer from the General Fund) totaled $525,000, and the appropriations totaled $212,100.

2. The $525,000 transfer from the General Fund was recorded although it had not yet been paid to the Debt Service Fund.

3. To provide additional resources to service the bond issue, a property tax was levied upon the citizens. The total levy was $1,050,000, of which $1,023,750 was expected to be collected.

4. Property taxes of $819,000 were collected.

5. Property tax receivables of $5,250 were written off.

6. Income received in cash from investments totaled $5,250.

7. Property taxes of $157,500 were collected.

8. The fund liability of $52,500 for interest on bonds was recorded, and that amount of cash was transferred to the fiscal agent.

9. Investment revenue of $3,150 was received in cash.

10. The fund liabilities for interest on bonds in the amount of $52,500 and principal in the amount of $105,000 were recorded, and cash for the total amount was transferred to the fiscal agent.

11. The fiscal agents fee of $1,050 was accrued (credit Vouchers payable).

12. Investment revenue of $1,575 was accrued.

13. The transfer recorded in transaction 2 was collected.

14. Investments totaling $1,050,000 were purchased.

Use the preceding information to do the following:

a. Prepare all the journal entries necessary to record these transactions for the Debt Service Fund.

b. Prepare a trial balance for the Debt Service Fund as of December 31, 2022.

c. Prepare a statement of revenues, expenditures, and changes in fund balance for the year ended December 31, 2022, and a balance sheet as of December 31, 2022, for the Debt Service Fund (assume all fund balance is restricted).

d. Prepare closing entries for the Debt Service Fund.