(Journal entries for several funds and financial statements for a Capital Projects Fund)

Following is a trial balance for the Old York Marina Capital Projects Fund and the transactions that relate to the 2004-2005 fiscal year:

1. The budget for the marina project provided for a remaining appropriation of $\$ 500,000$. Record the budget and reestablish the budgetary accounts for encumbrances. Assume $\$ 30,000$ of investment income (dividends and interest) is budgeted.
2. The contractor, Sir Fixit, submitted a progress billing on the marina for $\$ 300,000$. The retained percentage was 10 percent.
3. Investments were redeemed for $\$ 320,000$. This amount included $\$ 20,000$ of investment income.
4. Sir Fixit was paid the amount billed, less a 10 percent retainage.
5. Investment income of $\$ 15,000$ was received in cash.
6. The final billing was received from Sir Fixit for $\$ 200,000$.
7. All remaining investments were redeemed for $\$ 205,000$. This amount included $\$ 5,000$ of investment income.
8. Sir Fixit was paid the amount billed, less a 10 percent retainage.
9. Before the project was formally approved, one of the piers fell into the lake. Because Sir Fixit had already removed its workers and equipment, the city was authorized to have the repairs made by a local contractor at a cost not to exceed $\$ 40,000$. The actual cost of the repairs totaled $\$ 32,000$. The remainder of the retainage was sent to Sir Fixit.
10. After the repairs, the project was formally approved and the accounting records were closed. The remaining cash was transferred to the Debt Service Fund. The funds for this project came from a general obligation bond issue.
Required: 1. Prepare all the journal entries necessary to record these transactions and close the Capital Projects Fund. In addition, identify the fund(s) used. A vouchers payable account is not used.
2. Prepare a statement of revenues, expenditures, and changes in fund balance for the Marina Capital Projects Fund for the 2004-2005 fiscal year.

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Old York Capital Projects Fund Boat Marina Fund Trial Balance July 1, 2004 Debits Credits Cash Investments Retained percentage on construction contracts Fund balance reserved for $ 30,000 500,000 $ 10,000 encumbrances 500,000 Unreserved fund balance 20,000 $530,000 $530,000