4-5 Preston Village engaged in the following transactions: 1. It issued $20 million in bonds to purchase a new municipal office building. The proceeds were recorded in a capital projects fund. 2. It acquired the building for $20 million. 3. It recognized, as appropriate, $300,000 of depreciation on municipal vehicles. 4. It transferred $2,060,000 from the general fund to a debt service fund. 5. It paid $60,000 in interest on long-term debt and repaid $2 million of principal on the same long-term debt. 6. It sold for $5 million village land that had been acquired for $4 million. The proceeds were recorded in the general fund. a. For each of the transactions, prepare journal entries to record them in appropriate governmental funds (which are accounted for on a modified accrual basis). b. Prepare journal entries to reflect how the transactions would be reflected in government-wide statements (which are prepared on a full accrual basis). c. How can governments justify preparing two sets of financial statements, each on a different basis?