2 .Central Valley received voter approval to issue $12 million of 5% bonds to construct a city office building. The estimated total cost of construction is $18 million. The city hopes to raise the balance needed through private donations. The city has a June 30 fiscal year-end. If the city maintains its books and records for fund financial accounting, prepare the appropriate journal entries. Be sure to indicate in which fund the entry is being made

1. October 1, the contractor requested a progress payment of $3 million for the earthwork and foundation work on the new building. The city paid the contractor. 2. January 1, the city transferred funds from the general fund to make the first interest payment. The city made the first interest payment on the bonds. 3. June 1, the contractor requested and received a progress payment of $12 million

July 1, the city issued $12 million of 5% serial bonds at face value. The bonds pay interest on January 1 and July 1 and the first principal payments are due in five years.