The City of Mountain View had the following transactions during the year, none of which have been recorded yet. Some of the transactions affect governmental activities.

1. Mountain View issued $5 million worth of serial bonds at 102 plus accrued interest in the amount of $50,000. The premium and accrued interest were recorded in the Debt Service Fund. Accrued interest on bond sold must be used for interest payments.
2. The citys General Fund collected and transferred $750,000 in tax collections to the Debt Service Fund. $600,000 of this amount was used to retire outstanding serial bonds and the remainder was used to make interest payments on outstanding serial bonds.