Prepare journal entries to record the following transactions related to the acquisition of capital assets by Rockytop County. Rockytop does not use encumbrance accounting. Identify the fund or funds in the left-hand margins for each journal entry.

a. To acquire major capital assets, the County issued 20-year 6% general obligation serial bonds with a face value of $2,000,000, receiving cash in the amount of $2,100,000. The $100,000 premium was, in turn, transferred to the fund which accumulates and pays debt service on the bonds. (Assume no accruals have been, nor should have been recorded, for any of these transactions or events.)

b. The general operating fund of the County transfers cash in the amount of $170,000 to a fund in anticipation of the payment of the first installment of debt service. (Assume no accrual has been made, nor should there have been, prior to this transfer.) Next, interest ($120,000) and principal ($50,000) on the debt incurred in (a), above were (1) accrued and then (2) paid by the fund servicing the general obligation debt.

c. Rockytop County provides its employees a non-contributory (employees pay nothing) defined benefit pension plan. Accordingly, the general operating fund of the County sent $200,000 to the fund that operates the pension plan for the month just ended. (Assume no accruals have been recorded, nor should there have been, for any of these transactions or events.)

d. The Water Utility Fund bills the general operating fund of the County for monthly water usage of $5,000. Assume both the sending/receiving funds journalize the billing immediately when made/received. Do not record the subsequent receipt/payment of the cash.