d. Term bonds totaling $400,000 were sold at face value on January 1, 2017, to finance construction. The 5%, 10-year bonds pay interest semiannually on January 1 and July 1. Each year, starting with...

d. Term bonds totaling $400,000 were sold at face value on January 1, 2017, to finance construction. The 5%, 10-year bonds pay interest semiannually on January 1 and July 1. Each year, starting with January 1, 2017, $40,000 was to be set aside in a sinking fund to provide for retirement of the bonds at maturity. Any income earned by the sinking fund was to be applied to the semiannual interest payments.

1. Prepare only the journal entries for the transactions that would be recorded in the general long-term debt account group through December 31, 2019.

2. Prepare a schedule of long-term liabilities for the city of Clinton as of December 31, 2019.