Serial Bond Debt Service Fund Journal Entries and Financial Statements. The Village of Vandalia Serial Bond Debt Service Fund balance sheet as of December 31,2007 , is presented below: Additional information: The bonds were issued on January 1, 2007. During FY 2007 the General Fund transferred sufficient cash to the debt service fund to finance the July 1, 2007, interest payment and to provide sufficient resources for timely payment of the January 1,2008 , interest and principal payments, plus an additional $50,000 that was invested as a financial cushion should tax collections be insufficient for future debt service. Beginning in FY 2008, property taxes will be levied in sufficient amounts each year to cover all future debt service payments. (Note: Do not record any of the FY 2007 transactions and events. Rather, proceed to the requirements listed below.) Required a. Prepare debt service fund entries in general journal form to reflect, as necessary, the following information and transactions for FY 2008 (ignore entries at the government-wide level): (1) The operating budget for FY 2008 consists of estimated revenues from property taxes of $360,000 and from interest on investments of $6,000 . Appropriations must be provided for a bond principal redemption payment of $150,000 and a semiannual interest payment of $100,000 due on January 1. 2008 , and an interest payment of $96,250 due on July 1,2008 . (2) Property taxes are levied in the amount of $372,000 , of which $12,000 is estimated to be uncollectible. (3) Checks are written and mailed for the principal redemption and interest payment due on January 1, 2008. 2007 the General Fund transferred sufficient cash to the debt service fund to finance the July 1, 2007, interest payment and to provide sufficient resources for timely payment of the January 1, 2008, interest and principal payments, plus an additional $50,000 that was invested as a financial cushion should tax collections be insufficient for future debt service. Beginning in FY 2008, property taxes will be levied in sufficient amounts each year to cover all future debt service payments. (Note: Do not record any of the FY 2007 transactions and events. Rather, proceed to the requirements listed below.) Required a. Prepare debt service fund entries in general journal form to reflect, as necessary, the following information and transactions for FY 2008 (ignore entries at the government-wide level): (1) The operating budget for FY 2008 consists of estimated revenues from property taxes of $360,000 and from interest on investments of $6,000 . Appropriations must be provided for a bond principal redemption payment of $150,000 and a semiannual interest payment of $100,000 due on January 1 . 2008 , and an interest payment of $96,250 due on July 1,2008 . (2) Property taxes are levied in the amount of $372,000 , of which $12,000 is estimated to be uncollectible. (3) Checks are written and mailed for the principal redemption and interest payment due on January 1, 2008. (4) Collections of current year property taxes during the year amount to $352,000 . (5) Interest receivable as of December 31, 2007, is collected in cash. (6) Checks are written and mailed for the interest payment due on July 1 . 2008. (7) Interest on investments is collected in the amount of $4,300 . (8) Accrued interest receivable on investments at year-end is $1,800 . (9) Budgetary and operating statement accounts are closed, and the uncollected taxes receivable and the related estimated uncollectible account balance are reclassified as delinquent. b. Prepare a balance sheet for the Village of Vandalia's Serial Bond Debt Service Fund as of December 31, 2008. c. Prepare a statement of revenues, expenditures, and changes in tund balances for the debt service fund for the year ended December 31, 2008. d. Prepare a schedule of revenues, expenditures, and changes in fund balancebudget and actual for the fund for the year ended December 31, 2008 . Prepare a statement of revenues, expenditures and changes in fund balance for the debt service fund for the year ended December 31, 2008. Prepare a schedule of revenues, expenditures and changes in fund balance budget and actual for the fund for the year ended December, 2008