On July 1, 2022, the first day of its 2023 fiscal year, the Town of Bear Creek issued at par $300,000 of 4 percent term bonds to renovate a historic wing of its main administrative building. The bonds mature in five years on July 1, 2027. 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 interest payments will be transferred from the General Fund shortly before the due dates. Investment earnings are added to the investment principal. Fiscal Year Period Required Addition Expected Earnings Ending Balance 2023 1 $ 27,398 $ 0 $ 27,398 2 27,398 548 55,344 2024 3 27,398 1,107 83,849 4 27,398 1,677 112,924 2025 5 27,398 2,258 142,580 6 27,398 2,852 172,830 2026 7 27,398 3,457 203,684 8 27,398 4,074 235,156 2027 9 27,398 4,703 267,257 10 27,398 5,345 300,000 Required a-1. Prepare journal entries in the debt service fund for the following: