Required information [The following information applies to the questions displayed below.) As of December 31, 2019, Sandy Beach had $9,200,000 in 5.0 percent serial bonds outstanding. Cash of $490,000 is the debt service fund's only asset as of December 31, 2019, and there are no liabilities. The serial bonds pay interest semiannually on January 1 and July 1, with $500,000 in bonds being retired on each interest payment date. Resources for payment of interest are transferred from the General Fund, and the debt service fund levies property taxes in an amount sufficient to cover principal payments. Required a-1. Prepare debt service fund and government-wide entries in general journal form to reflect, as necessary, the following information and transactions for FY 2020. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) Answer is complete and correct. Fund / Transaction Governmental General Journal Debit Credit Activties 1. The operating budget for FY 2020 consists of estimated revenues of $1,070,000 and estimated other financing sources equal to the amount of interest to be paid in FY 2020. Appropriations must be provided for interest payments and bond redemptions on January 1 and July 1. Serial Bond Debt 1 Service Fund Estimated Other Financing Sources 447,500 Estimated Revenues 1,070,000 Appropriations 1,447,500 Budgetary Fund Balance 70,000 Governmental Activities No Journal Entry Required 2. Cash was received from the General Fund and checks were written and mailed for the January 1 principal and interest payments. 2a Serial Bond Debt Service Fund Record cash received from the general fund. Cash 230,000 Other Financing SourcesInterfund 230,000 Transfers In 2b Record principal and interest paid. ExpendituresInterest ExpendituresPrincipal Cash 3 230,000 500,000 730,000 2c Governmental Activities > Interest Payable Bonds Payable Cash 230,000 500,000 730,000 3. Property taxes in the amount of $1,070,000 were levied (no estimate for uncollectible accounts has been made). 3 Serial Bond Debt Service Fund Taxes ReceivableCurrent 1,070,000 Revenues 1,070,000 So So Governmental Activities 1,070,000 Taxes ReceivableCurrent General RevenuesProperty Taxes 1,070,000 4. Property taxes in the amount of $1,069,000 were collected. Serial Bond Debt 4 Cash Service Fund Taxes ReceivableCurrent 1,069,000V 1,069,000 Governmental Activities Cash 1,069,000 Taxes Receivable-Current 1,069,000 5. Cash was received from the General Fund and checks were written and mailed for the July 1 principal and interest payments. Serial Bond Debt 5 Record cash received from the general fund. Service Fund Cash 217,500 nther Cinansine Carrean Intarfend 5. Cash was received from the General Fund and checks were written and mailed for the July 1 principal and interest payments. Serial Bond Debt 5 Service Fund Record cash received from the general fund. Cash 217,500 Other Financing Sources-Interfund 217,500 Transfers In 5b Record principal and interest paid. ExpendituresInterest ExpendituresPrincipal Cash 217,500 500,000 717,500 5C Governmental Activities 217,500 Expenses-Interest on Long-term debt Bonds Payable Cash 500,000 717,500 a-2. Prepare the closing entries. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) Fund / Transaction Governmental General Journal Debit Credit Activties 6. Adjusting entries were made and uncollected taxes receivable were reclassified as delinquent. At the fund level, entries were also made to close budgetary and operating statement accounts. (Ignore closing entries in the government activities journal.) Serial Bond Debt Service Fund Record the entry to close the budgetary statement account. Budgetary Fund Balance 70,000 Appropriations 1,447,500 Estimated Other Financing Sources 447,500 Estimated Revenues 1,070,000 6b Record the entry for classifying uncollectible accounts. Taxes Receivable-Delinquent 1,070,000x Taxes ReceivableCurrent 1,070,000 6C Record the deferred inflows of resources. ExpensesInterest on Long-term debt Interest Payable 447,500X 447,500 6d Record the entry to close the operating statement account. Other Financing SourcesInterfund 447,500 Transfers In Revenues 1,070,000x ExpendituresInterest Expenditures-Principal Fund Balance-Assigned 447,500 1,000,000 70,000 Governmental Activities No Journal Entry Required x 6f Record the entry for classifying uncollectible accounts. Expenses-Interest on Long-term debt 447,500X Interest Payable XX 447,500