On July 1, 2019, the first day of its 2020 fiscal year, the Town of Bear Creek issued at par $3,900,000 of 6 percent term bonds to renovate a historic wing of its main administrative building. The bonds mature in five years on July 1.2024. Interest is payable semiannually on January 1 and July 1 As illustrated in the table below, a sinking fund is to be established with equal semiannual additions made on June 30 and December 31. Cash for the sinking fund additions and the semiannual Fund shortly before the due dates. Investment earnings are added to the investment principal. interest payments will be transferred from the General Fiscal Required Expected Ending Year Period Addition Earnings Balance 2020 2021 2022 2023 2024 0 340,199 690,604 20,7181,051,521 31,546 ,423,266 1,806,163 54,1852,200,547 66,0162,606,762 78,2033,025,164 90,755 3,456,118 10 340,199 103,6843,900,000 340,199 $ 340,199 340,199 340,199 340,199 340,199 340,199 340,199 340,199 10,206 42, 698 Required a-1. Prepare journal entries in the debt service fund for the following: (If no entry is required for a transaction/ev "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) ransaction Fund General Journal Debit Credit a. On July 1, 2019, record the budget for the fiscal year ended June 30, 2020. Include 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, 2020 Term Bond Debt Service Fund Prev 25 of 26 Next>