Part C (2Chapter 6Journal entries for Debt Service Fund transactions

At the start of 2019, Croton's Debt Service Fund had no assets or liabilities. Prepare appropriate journal entries

Debt Service Fund and where appropriate, in the General Fund. We suggest

journal entries to general ledger T-accounts.)

1. The General Fund transferred $1,200 cash to the Debt Service Fund.

2. The first installment of principal and interest on the bonds sold in Part C (1) came due for payment.

3. The principal and interest due for payment were paid.

4. Debt service on bonds sold by Croton in previous years came due and was paid. Principal and interest

$600 and $470, respectively