The City of Jefferson engaged in the following transactions in its fiscal year ending August 31, 2020. By law, the county is required to establish a capital projects fund to account for school construction projects and a debt service fund to account for resources legally restricted to the payment of long-term principal and related interest. Record the transactions below noting the appropriate fund. If a transaction impacts two funds, it should be recorded in both.

Question) On June 1, 2020, the county issued $2 million in tax anticipation notes (TAN). It repaid these notes on September 30 2020, which is 1 month after yearend (8/31). Interest applicable to the notes for the fiscal year ending August 31, 2020, was $25,000, all of which was paid on September 30, 2020 when the notes matured. This $25,000 was transferred from the general fund to the debt service fund on August 31, 2020 and the county elected to accrue interest as of August 31, 2020 in accordance with GASB standards. (Note: only record the entries applicable to fiscal year ending 8/31/20).