Question

During the fiscal year ended June 30, 20X3, West City Councilauthorized construction of a new city hall building and the sale ofserial bonds to finance the construction. The followingtransactions related to financing and constructing the city halloccurred during fiscal 20X3:

1.	On August 1, 20X2, West issued $5,160,000 of serial bonds for$5,260,000. Interest is payable annually, and the first retirementof $516,000 is due on July 31, 20X7. The premium is transferred tothe debt service fund.
2.	The old city hall, which had a recorded cost of $659,000, wastorn down. The cost of razing the old building was $51,500, net ofsalvage value. This cost was included in the capital budget but wasnot encumbered. The cost is vouchered and paid.
3.	West signed a contract with Roth Construction Company to buildthe city hall for $4,520,000. The contract cost is to beencumbered. Construction is to be completed during fiscal 20X4.
4.	Roth Construction Company bills West $2,130,000 for constructioncompleted during fiscal 20X3. Ten percent of the billings will beretained until final acceptance of the new city hall. The billingless the retainage had been paid during the fiscal year.

Required:

a.

For each of these transactions, prepare the necessary journalentries for all funds involved. Give the closing entries for thecapital projects fund. (Select the appropriate fund foreach situation when required. If no entry is required for atransaction/event, select "No journal entry required" in the firstaccount field.)

b.

Prepare a balance sheet for the capital projects fund at June30, 20X3.

c.	Prepare a statement of revenues, expenditures, and changes infund balance for the capital projects fund for the fiscal yearended June 30, 20X3. Assume the new city hall building is the onlyCapital Project with West City Council at the end of June 30, 20X3.(Amounts to be deducted should be indicated with minussign.)