Problem 3 - Chapter 6 Journal Entries. Record the following transactions in general journal form related to the debt activities of the City of Layton described below. Journal entries should be made in the spaces provided below. If no entry is required in a fund or in Governmental Activities, you must write NO ENTRY in order to receive credit. No subsidiary ledgers entries are required. Ignore journal entries that would be required in the General Fund, unless told otherwise below. 1. Foster City issued bonds through its General Fund with a par value of $100,000,000. The bonds were dated and sold at par on January 1, 2021, and the bond proceeds went directly into the General Fund. The bonds mature on January 1,2041, and have a stated annual interest rate of 4%. The interest is payable semi-annually, with a $22000,000 interest payment being due on June 30, 2021 and a $2,000,000 interest payment being due on December 31, 2021 for the first year. Bond principal of $5,000,000 will be paid each year for the next 20 years. The annual principal payments are due on December 31 of each year, with the first principal payment due on December 31, 2021. 2. On January 1, 2021, the City recorded its budget for the newly created 2021 Regular Serial Bond Debt Service Fund. Prior to June 30 and December 31 of each year, the General Fund will transfer to the Debt Service Fund the required amounts for the semiannual interest payments and the annual principal payments. Required: Write the necessary journal entries on January 1, 2021 in the 2021 Regular Serial Bond Debt Service Fund to record the budget for fiscal year 2021 (the fiscal year ending on December 31, 2021). You will be instructed later to make the journal entries for the actual transfers of cash from the General Fund to the Debt Service Fund and related entries to record interest payments and principal payments. 2021 Regular Serial Bond Debt Service Fund: Governmental Activities