The following transactions relate to the City of Middileton, which has a fiscal year end of December 31 . The city adopts budgets for the Generat fund and the debt service fund. NOTE, for simplicity, and contrary to GASB standards, assume straight-line amortization for this problem. 1. The City of Middleton sells a $2,000,000,3%, 16-year general obligation bond issue on January 2 at par. The bond pays interest semiannually on July 1 and January 2 , with the first principal payment scheduled for next year on January 2 . A city hall annex must. be constructed with the bond proceeds. 2. Budgets are adjusted to account for the sale of the bond. The debt service fund budget should be adjusted to accommodate the new debt issue. If the debt service fund does not have sufficient resources to pay expenditures, the needed funds will be provided by the General Fund. 3. On February 1, $1,000,000 of the cash from the sale of the bonds is invested for one year at a rate of 1.26\%. Earnings on the investment are available for construction of the city hall annex. 4. July 1 the first interest payment is due. 5. December 31 adjusting entries are prepared. Required: For the five related transactions provided, prepare all necessary journal entries for the affected funds and at the governmental activities level. Clearly indicate the fund joumal or the government-wide joumal in which the entry is being recorded (If no entry is required for o tronsoction/event, select "No Journol Entry Required" in the first occount field.) A frecard the losue of 1 percent bonds in the Capital projects furid. 8. Reecord the issue of:3 percent borids in the Govermmental Acthyities furyd. c Record the adjusted to account for the sale of the bond in the bebt Service fund: 0) Fecord tha adjusted to account for the sale of the bond in tha Gionernmental furnd