. [Para. 6b-1] From the data given about the bond issue already outstanding on January 1, 2023, and the City Hall Annex Construction Fund bond issue projected to be sold on April 1, city officials adopted a legal budget for the fiscal year ended December 31, 2023.

Required: Record the budget for the Bingham Debt Service Fund for year 2023. Budgetary entries have no effect on the government-wide accounting records. The budget provides for estimated revenues of $704,000 from property taxes, $2,000 of interest and penalties on taxes, and $5,000 of earnings on investments. It also provides for estimated other financing sources for premiums on bonds of $50,000 and interfund transfers in from the General Fund of $75,000. Appropriations associated with the 3% bond provide for the $250,000 payments of bond principal maturing on June 30 and December 30, as well as the associated bond interest payments due on those dates ([.03 X 6/12 X $4,250,000] + [.03 X 6/12 X $4,000,000]. The new 2% bond issuance will require an interest payment on October 1 [.02 X 6/12 X $7,500,000]).