Prepare general journal entries, as necessary to record the following transactions in the debt service fund general journal and, if applicable, in the governmental activities general journal.

1) From the data given about the bond issue already outstanding on January 1, 2020, and the City Hall Annex Construction Fund bond issue sold on that date, city officials adopted a legal budget for the fiscal year ended December 31, 2020.

Required: Record the budget for the Bingham Debt Service Fund for year 2020. Budgetary entries have no effect on the government-wide accounting records. The budget provides for estimated revenues of $700,000 from property taxes, $2,000 of interest and penalties on taxes, and $9,000 of earnings on investments. It also provides for estimated other financing sources for premiums on bonds of $75,000 and interfund transfers in from the General Fund of $50,000. Appropriations of $812,500 were provided for the payment of bond principal of $500,000 maturing on September 30 and $312,500 for bond interest payments due on March 31, July 1, and September 30, 2020 ([.02 X 6/12 X $10,000,000] + [.03 X 6/12 X $7,500,000] + [.02 X 6/12 X $10,000,000]). (In the Debt Service Fund, the City opts not to budget for the subsequent year January 1 interest payment.)

2) Property taxes were levied by the debt service fund in the amount of $705,000. Of this amount, $5,000 was expected to be uncollectible.

Required: Record these transactions in both the debt service fund and governmental activities journals.

3) Cash in the amount of the $75,000 premium on the bonds sold on January 1, 2020 was received and recorded in the debt service fund.

Required: Record this transaction in the debt service fund. No entry is required at this time in the governmental activities general journal since the bond issue, including the related premium and accrued interest, was recorded in the governmental activities general journal in transaction 5a-1.

4) Temporary investments were purchased in the amount of $500,000.

Required: Record this transaction in both the debt service fund and governmental activities journals.

The following Information might be useful:

CITY OF BINGHAM Debt Service Fund Trial Balance As of December 31, 2019 Debits $950,000 85,000 Credits Cash Taxes Receivable-Delinquent Allowance for Uncollectible Delinquent Taxes nterest and Penalties Receivable on Taxes Allowance for Uncollectible Interest and Penalties Deferred Inflows of Resources Fund Balance-Restricted Totals $54,000 9,600 960 39,640 950,000 $1,044,600 $1,044,600 CITY OF BINGHAM Debt Service Fund Trial Balance As of December 31, 2019 Debits $950,000 85,000 Credits Cash Taxes Receivable-Delinquent Allowance for Uncollectible Delinquent Taxes nterest and Penalties Receivable on Taxes Allowance for Uncollectible Interest and Penalties Deferred Inflows of Resources Fund Balance-Restricted Totals $54,000 9,600 960 39,640 950,000 $1,044,600 $1,044,600