The Town of Lilehammar has $3,000,000 of 6 percent bonds outstanding. Interest on the general obligation, general government indebtedness is payable semiannually each March 31 and September 30. December 31 is the fiscal year-end. Record the following transactions in the town’s debt service fund.

1. Received a transfer from the general fund to provide financing for the March 31, interest payment.

2. Paid the interest due on March 31.

3. Received a transfer from the general fund to provide financing for the September 30, interest payment and retirement of $1,000,000 of the bonds.

4. Paid the interest on September 31, and repaid $1,000,000 of the bonds.

5. December 31 is the fiscal year-end. Record any appropriate adjustments.

6. Received a transfer from the general fund to provide financing for the March 31 interest payment for year two of the bond.

7. Paid the interest due on March 31 for year two of the bond.

REQUIRED

Prepare a statement of revenues, expenditures, and changes in fund balance for the Town of Lilehammar debt service fund for the year ended December 31, 2011.