During the fiscal year ended June 30. 20X3, West City Council authorized construction of a new city hall building and the sale of serial bonds to finance the construction. The following transactions. related to financing and constructing the city hall, occur during fiscal \(20 \times 3\) :

1. On August 1. 20X2, West issues \(\$ 5,000,000\) of serial bonds for \(\$ 5,080,000\). Interest is payable annually and the first retirement of \(\$ 500,000\) is due on July \(31,20 \times 7\). The premium is transferred to the debt service fund.

2. The old city hall, which had a recorded cost of \(\$ 650,000\), is torn down. The cost of razing the old building is \(\$ 45,000\), net of salvage value. This cost was included in the capital budget, but was not encumbered. The cost is vouchered and paid.

3. West signs a contract with Roth Construction Company to build the city hall for \(\$ 4,500,000\). The contract cost is to be encumbered. Construction is to be completed during fiscal 20X4.

4. Roth Construction Company bills West \(\$ 2,000,000\) for construction completed during fiscal \(20 \times 3\). Ten percent of the billings will be retained until final acceptance of the new city hall. The billing less the retainage was paid during the fiscal year.

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a. For each of the transactions above. prepare the necessary journal entries for all the funds involved. Indicate the fund in which the entry is made by giving its initials in the left margin: CPF or DSF. Give the closing entries for the capital projects fund.

b. Prepare a balance sheet for the capital projects fund at June 30, \(20 \mathrm{X} 3\).

c. Prepare a statement of revenues. expenditures, and changes in fund balance for the capital projects fund for the fiscal year ended June 30. 20X3.