Prepare the necessary journal entries to record the following transaction for the city of Small ville during 2017 in the general fund and account groups, and specify the account group used. Entries in the debt service fund and capital projects fund should be ignored.
a. General obligation term bonds with a face value of $2,700,000 were sold for $2,705,000. The proceeds from the bond issue were to be used to construct a new library and were received by the capital projects fund.
b. $200,000 was transferred from the general fund to the debt service fund to begin saving for the retirement of the bonds in transaction (a) at maturity.
c. $135,000 was transferred from the general fund to the debt service fund to retire a portion of a serial bond due in 2019.
d. A police car was purchased for $22,000 plus the trade-in of an old police car with a fair value of $3,000, originally purchased for $15,000 from the general fund.
e. The serial bonds funded in transaction (c) were retired on their maturity date.
f. By year-end, $450,000 of the work had been completed on the new library.