2 Save Answer 20 points 1. The government purchases a car for $28,000, payable is 15 days. Vehicles of this type usually last for five years, straight-line, no residual value. Assume the car is purchased for its fire department using general fund resources. Four years later the city sells the car for $5,000 cash, with the proceeds going to the general fund. Record the purchase and the sale of the car. 2. Assume that everything is the same as in (1) except that the car is purchased by its Water company. Record the purchase and the sale of the car. 3. The general fund temporarily advances $10,000 to a special revenue fund. 4. The government issues $650,000 face value of serial bonds, with the proceeds used to finance the construction of a new city hall. 5. A contract for $600,000 is entered into with Candid Construction Company for the construction of a new city hall. 6. A progress billing of $100,000 is received from Candid Construction for work done on the project. According to the terms of the contract, the city will withhold 10% of any billing until the project is completed. 7. The city makes the following payments on the bonds issued in d above: $40,000 in interest and $50,000 in principle 8. The internal service fund purchased supplies for $5,000 in cash. Required: Prepare the necessary journal entries to record the transactions. Identify the fund or account group in which the above events would be recorded. Amounts