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Hi I need some help on the following two questions.The City of Mountain View had the following

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Hi I need some help on the following two questions.The City of Mountain View had the following

Hi I need some help on the following two questions.

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 $6 million worth of serial bonds at 98 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 city’s General Fund collected and transferred $650,000 in tax collections to the Debt Service Fund. $450,000 of this amount was used to retire outstanding serial bonds and the remainder was used to make interest payments on outstanding serial bonds.

Prepare in general journal form the necessary entries in the governmental activities and appropriate fund journals for each transaction.

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