The county of Alameda is building a park. The main financing source will be a $1,000,000 bond issue. In addition, the general fund will transfer $100,000 transfer to fund the capital project.

Required:

Record the journal entries for the Debt Service Fund and the Government-Wide financial statements.

1. The $1,000,000 bonds were issued at par on 1/1. The bonds have the annual interest of 5% with semiannual interest payments on 6/30 and 12/31. $50,000 principal will be paid every June.

2. Prepare the budgetary entries.

3. Prepare the entries to record interest and principal payment on 6/30.

4. Prepare the entries to record interest and principal payment on 12/31.