The City of Burton has $5,000,000 par value of general government, general obligation bonds payable outstanding. The city has decided to defease those bonds in substance. Record the following transactions in all the accounts (both in the funds and in the General Capital Assets and General Long-Term Liabilities accounts) of the City of Burton that are affected.
1. The city issued $3,000,000 of refunding bonds at par.
2. The city transferred $1,850,000 from its General Fund to its Debt Service Fund to provide the additional resources needed to defease the bonds in substance.
3. The city paid $4,850,000 into an irrevocable trust established at the First National Bank of Burton to defease the bonds in substance.