On July 1, 2016, the first day of its 2017 fiscal year, the City of Nevin issued at par $4,000,000 of 6 percent term bonds to construct a new city office building. The bonds mature in five years on July 1, 2021. Interest is payable semiannually on January 1 and July 1. A sinking fund is to be established with equal semiannual additions made on June 30 and December 31, with the first addition to be made on December 31, 2016. Cash for the sinking fund additions and the semiannual interest payments will be transferred from the General Fund shortly before the due dates. City officials assume a yield on sinking fund investments of 6 percent per annum, compounded semiannually. Investment earnings are added to the investment principal.

**b-1 is the first question. There is no a.

***The 3 things filled in are already correct!

Required b-1. Prepare journal entries in the debt service fund for the following: (If no entry is required for a transaction event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) General Journal Fund Transaction Debit Credit 1. Record a budget for the fiscal year ended June 30, 2017. Include an accrual for all interfund transfers to be received from the General Fund during the year. An appropriation should be provided only for the interest payment due on January 1, 2017 1 Term Bond Debt Service Fund 2. On December 28, 2016, the General Fund transferred $468,922 to the debt service fund. The addition to the sinking fund was immediately invested in 6 percent certificates of deposit. 2a Term Bond Debt Service Fund Record the transfer from the general fund to the debt service fund. 2b Record the investment in the certificates of deposit. 3. On December 28, 2016, the city issued checks to bondholders for the interest payment due on January 1, 2017. 3 Term Bond Debt Service Fund Required b-1. Prepare journal entries in the debt service fund for the following: (If no entry is required for a transaction event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) General Journal Fund Transaction Debit Credit 1. Record a budget for the fiscal year ended June 30, 2017. Include an accrual for all interfund transfers to be received from the General Fund during the year. An appropriation should be provided only for the interest payment due on January 1, 2017 1 Term Bond Debt Service Fund 2. On December 28, 2016, the General Fund transferred $468,922 to the debt service fund. The addition to the sinking fund was immediately invested in 6 percent certificates of deposit. 2a Term Bond Debt Service Fund Record the transfer from the general fund to the debt service fund. 2b Record the investment in the certificates of deposit. 3. On December 28, 2016, the city issued checks to bondholders for the interest payment due on January 1, 2017. 3 Term Bond Debt Service Fund