Q3. The following transactions are related with a Township Debt Service Fund. Prepare journal entries to record the transactions in the Debt Service Fund. (1.5 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.