Q$3.$ The following transactions are related with a Township Debt Service Fund. Prepare journal

entries to record the transactions in the Debt Service Fund.

$(5$ Marks$)$

a$.$ The Township levies a special property tax amounting to $$1,750,000$ to pay debt

service on its long$-$term general obligation debt. The tax must be accounted for in

the Debt Service Fund.

b$.$ All the property taxes levied for debt service purposes are collected.

c$.$ The Township invests $$525,000$ in a six$-$month certificate of deposit.

d$.$ Debt service $($interest of $$350,000$ and principal of $$700,000)$ becomes due and

payable.

e$.$ The debt service liabilities are paid.

f The certificate of deposit in c$.$ matures and the Township receives a total of $$535,500,$

which includes $$10,500$ of interest.