On June 1, 2012, the City of Cape May authorized the construction of a police station at an expected cost of $250,000. Financing will be provided through transfers from a Special Revenue Fund.

The following transactions occurred during the fiscal year beginning June 1, 2012, relating to the Capital Project Fund.

1. The $250,000 receivable from the Special Revenue Fund was recorded.

2. The Special Revenue Fund transferred $125,000 to the Capital Project Fund to begin construction on the police station.

3. The Capital Project Fund invested the transfer of monies in a six-month certificate, at 5%.

4. A contract in the amount of $250,000 was let to the lowest bidder.

5. Architect and legal fees in the amount of $3,125 were approved for payment. There was no encumbrance for these expenditures.

6. Contract billings in the amount of $250,000 were approved for payment on the completion of the police station and the encumbrance was removed.

7. The six-month certificate was redeemed at maturity with interest revenue.

8. The Special Revenue Fund transferred the final amount of $125,000 to the Capital Projects Fund.

9. All liabilities except for the retention of 5% of the contract price were paid.

10. All requirements and obligations were completed; the final payment of the contract price was made and all nominal accounts were closed.

Required:

Prepare the journal entries necessary in the Capital Projects Fund to record the transactions and events described above.