Journal entries for a Debt Service Fund The City of Bloomington establishes a Debt Service Fund to accumulate resources to service its 2018 general obligation bonds. Voters approve an additional property tax that can only be used to pay the debt service on the bonds. The city finances the remainder of the debt service through a transfer of general fund resources. Prepare journal entries to record the following transactions for the city’s Debt Service Fund during calendar year 2019. No budgetary entries should be recorded. 1. For 2019, the property tax levy for debt service is $1,000,000 with $4,000 expected to be uncollectible.
2. Property taxes of $950,000 are collected prior to the first interest payment being due on the bonds.
3. Finance director, Yulianti Abbas, invests $750,000 in a short-term investment.
4. The investment matures with interest earnings of $4,000.
5. The city transfers $50,000 from the General Fund to the Debt Service Fund.
6. The city makes its first interest payment on the bonds in the amount of $1 million.
7. The city pays the bill of $4,000 from its fiscal agent for servicing the debt.

The gilbert instrument corporation is considering replacing the wood steamer it currently uses to shape guitar sides. the steamer has 6 years of remaining life. if kept,the steamer will have depreciaiton expenses of $650 for five years and $325 for the sixthyear. its current book value is $3,575, and it can be sold on an internet auction site for$4,150 at this time. if the old steamer is not replaced, it can be sold for $800 at the endof its useful life. gilbert is considering purchasing the side steamer 3000, a higher-end steamer, whichcosts $12,000 and has an estimated useful life of 6 years with an estimated salvage value of$1,500. this steamer falls into the macrs 5-year class, so the applicable depreciationrates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%. the new steamer is fasterand allows for an output expansion, so sales would rise by $2,000 per year; the newmachine's much greater efficiency would reduce operating expenses by $1,900 per year.to support the greater sales, the new machine would require that inventories increase by$2,900, but accounts payable would simultaneously increase by $700. gilbert's marginalfederal-plus-state tax rate is 40%, and its wacc is 15%.a. should it replace the old steamer? b. npv of replace = $2,083.51