A County's Debt Service Fund Has the Following Condensed Trial

Essay

A county's debt service fund has the following condensed trial balance at December 31, 2021:
$$\begin{array} { | l | r | } \hline & { \text { Dr (Cr) } } \\\hline \text { Cash } & \$ 10,550 \\\hline \text { Short-term investments } & 50,000 \\\hline \text { Accrued investment income receivable } & 50 \\\hline \text { Transfer to capital projects fund } & 5,000,000 \\\hline \text { Bonds payable } & ( 5,000,000 ) \\\hline \text { Interest expense } & 75,000 \\\hline \text { Investment income } & ( 600 ) \\\hline \text { Bond premium revenue } & ( 60,000 ) \\\hline \text { Interest payable } & ( 75,000 ) \\\hline \text { Total } & \text { \$0 } \\\hline\end{array}$$ General obligation bonds with a par value of $5,000,000 were issued for $5,060,000 on July 1, 2021. The bonds pay interest at 3 percent annually on June 30. The bonds are being used for construction projects.
Required
The debt service fund trial balance contains several errors. Prepare correcting entries and present the corrected trial balance.