The town of Aberdeen authorized a fire station to be built at an estimated cost of $150,000. On January 1, 2020, 6% bonds with a par value of $150,000 were authorized and issued. Any difference between the par value of the bonds and the proceeds from their sale is transferred to the Debt Service Fund.

The following transactions relating to the Capital Project Fund occurred during 2020.

1. Encumbrances were recorded on signing contracts in the amount of $150,000.

2. Proceeds from the bond issue were received in the amount of $155,000.

3. The premium on the bond issue was transferred to the Debt Service Fund.

4. Contract billings in the amount of $150,000 were approved for payment on the completion of the fire station.

5. The contractor was paid except for retention of 5% of the contract price.

6. The final contract price was paid on the completion of the requirements and obligations of the contract. The nominal accounts were closed.

Required:

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