Jefferson County established a capital project fund in 2019 to build low-income housing with the transfer of $100,000 from the General Fund. A portion of that was expended on engineering studies in 2019. The following transactions occurred during 2020:

1. April 1, 2020, 4 percent bonds with a face value of $800,000 were issued in the amount of $817,000. The bond premium was transferred to the debt service fund.

2. The County received notice that it had met eligibility requirements for a federal government grant intended to support the capital project in the amount of $265,000. The grant (cash) will be received when the project is completed in February 2021.

3. The County issued a contract for the construction in the amount of $1,030,000.

4. The contractor periodically bills the County for construction completed to date. During the year, bills totaling $680,000 were received. By year-end, a total of $605,000 had been paid. Jefferson County established a debt service fund to make interest and principal payments on the bonds issued in item 1 above. Bond payments are made on October 1 and April 1 of each year. Interest is based on an annual rate of 4 percent. A principal payment of $27,000 is due in 2020. The following transactions occurred during 2020:

5. The bond premium was received by the debt service fund through transfer from the capital project fund.

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Capital Project Fund Trial Balance: December 31, 2019 Debits Credits Cash $72,000 Fund Balance $72,000