The City of Hartford has $3,200 par value of general government, general obligation bonds payable outstanding. The bonds have a call option at 102. The city has decided to call the bonds at their call date. The city uses a Debt Service Fund for all refunding transactions. All amounts are in thousands of dollars.

Record the transactions

1. The city issued $2,000 of refunding bonds at par.
2. The city transferred $1,264 from the General Fund to the Debt Service Fund to provide the additional resources needed to call the bonds.
3. The city paid $3,264 to bondholders to retire the bonds at the call date