The City of Amarillo is authorized to issue $$6,000,000,5$ percent regular serial bonds in $2023$ for the construction of a new exit off the

interstate highway within city limits$.$ The bonds mature in equal annual amounts beginning on January $1,2024,$ for $10$ years and pay

interest on January $1$ and July $1.$ The city is required to use all accrued interest and premiums to service the debt. The funds to pay the

interest will be transferred from the General Fund. The county's fiscal year$-$end is December $31.$

Required

a$.$ Prepare the budgetary entries for $2023$ assuming that the bonds were scheduled to be issued on January $2.$ Assume that the

January $1,2024,$ principal and interest payments will be included in the $2024$ budget. $($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.

b$.$ The bonds were sold on February $1,2023,$ at $102.$ Prepare the journal entries needed to record the issuance of the bonds, including

the entries required in the debt service fund and any entries required in the governmental activities general ledger at the

government$-$wide level. $($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. c$.$ Prepare the entry required to reflect the transfer of funds from the General Fund to the debt service fund. $($You may ignore the entry

in the General Fund.$)($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.

d$.$ Prepare the journal entries needed to record the first interest payment made on July $1,$ including the entries required in the debt

service fund and any entries required in the governmental activities general ledger at the government$-$wide level. Assume that the

straight$-$line method is used for premium amortization. $($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. f$.$ Prepare the budgetary entries for $2023$ assuming that the bonds were scheduled to be issued on January $2.$ Assume that the January $1,2024,$ principal and interest payments will be included in the $2023$ budget. Prepare the entry required to reflect the transfer of funds from the General Fund to the debt service fund. $($You may ignore the entry in the General Fund.$)($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 but not entirely correct.

$\backslash$table$[[$Transaction$,$Fund,General Journal,,Debit,Credit$],[1.$ Record the budget transaction.$],[1,$Debt Service Fund,Estimated Other Financing Sources$-$Transfers In$,$V$,900,000,],[,$Appropriations,$(,,900,000],[2.$ Record the transfer of funds.$],[2,$Debt Service Fund,Cash,$(,30,000\backslash$times $,],[,$Other Financing Sources$-$Interfund Transfers In$,(,,30,000\backslash$times $]]$