$5$C$.$ Part $1.$ Capital Projects Fund TransactionsThe voters of the City of Monroe approved the issuance of tax$-$supported bonds in the face amount of $$4,000,000$ for the construction and equipping of a new City Jail. Architects were to be retained, and construction was to be completed by outside contractors. In addition to the bond proceeds, a $$1,335,000$ grant was expected from the state government.Required:a$.$ Open a general journal for the City Jail Annex Construction Fund. Record the following transactions and post to the general ledger. Control accounts are not necessary.$(1)$ On January $1,2020,$ the total face amount of bonds bearing an interest rate of $8$ percent was sold at a $$200,000$ premium. Principal amounts of $$200,000$ each will come due annually over a $20-$year period commencing January $1,2021.$ Interest payment dates are July $1$ and January $1.$ The first interest payment will be July $1,2020.$ The premium was transferred to the City Jail Debt Service Fund for the future payment of principal on the bonds.$(2)$ The receivable from the state government was recorded.$(3)$ Legal and engineering fees early in the project were paid in the amount of $$119,000.$ This amount had not been encumbered.$(4)$ Architects were engaged at a fee of $$250,000.(5)$ Preliminary plans were approved, and the architects were paid $$50,000(20$ percent of the fee$).(6)$ The complete plans and specifications were received from the architects and approved. A liability in the amount of $$150,000$ to the architects was approved and paid.$(7)$ Bids were received and opened in public session. After considerable discussion in City Council, the low bid from Hardhat Construction Company in the amount of $$4,500,000$ was accepted, and a contract was signed.$(8)$ The contractor required partial payment of $$1,350,000.$ Payment was approved and vouchered with the exception of a $5$ percent retainage. $(9)$ Cash in the full amount of the grant was received from the state government. $(10)$ Furniture and equipment for the annex were ordered at a total cost of $$459,500.(11)$ Payment was made to the contractor for the amount payable $($see $8$ above$).(12)$ The contractor completed construction and requested payment of the balance due on the contract. After inspection of the work, the amount, including the past retainage, was approved for payment and then paid.$(13)$The furniture and equipment were received at a total actual installed cost of $$459,300.$ Invoices were approved for payment.$(14)$ The remainder of the architects fees was approved for payment.$(15)$ The City Jail Construction Fund paid all outstanding accounts payables $($$ $509,300)$ on December $31,2020.(16)$ The remaining cash was transferred to the City Jail Debt Service Fund.b$.$ Post the entries to the City Jail Construction Fund general ledger.c$.$ Prepare and post an entry closing all nominal accounts to Fund Balance. $5$C$.$ Part $2.$ Existing Debt Service Fund TransactionsThe City Hall Debt Service Fund of the City of Monroe has been open for five years; it was created to service a $$16,000,000,3$ percent tax$-$supported bond issue. As of December $31,2019,$ this serial bond issue had a balance of $$12,000,000.$ Semiannual interest payments are made on January $1$ and July $1,$ and a principal payment of $$400,000$ is due on January $1$ and July $1$ of each year. As this is a regular serial bond debt service fund, the only accounts with balances as of January $1,2020,$ were Cash with Fiscal Agent and Fund BalanceRestricted for Debt Service, each with balances of $$412,000.($Revenues were raised and collected in cash in $2019$ in order to be able to pay bond principal and interest due on January $1,2020.)$ The government chose not to accrue interest payable.Required:a$.$ Open a general journal for the City Hall Debt Service Fund and prepare journal entries for the following transactions. Control accounts are not necessary$(1)$ The fiscal agent reported that $$180,000$ in checks had been mailed to bondholders for interest due on January $1,$ and $$400,000$ in checks were mailed for bonds maturing that day.$(2)$ Cash in the amount of $$574,000$ was received from the General Fund on June $30$ and was transferred to the fiscal agent.$(3)$ The fiscal agent reported that checks dated July $1$ had been mailed to bondholders for interest of $ $174,000$ due that day and $$400,000$ in checks were mailed for bonds maturing that day.$(4)$ Cash in the amount of $$568,000$ was received from the General Fund on December $31$ and transferred to the fiscal agent to be used for the interest and principal due on January $1($next fiscal year$).$ The government elected to not accrue the interest or principal at year$-$end.b$.$ Post the entries to the City Hall Debt Service Fund ledger $($t$-$accounts$).$c$.$ Prepare and post an entry closing all nominal accounts to Fund Balance. Assume any remaining net resources are classified as Fund Balance Restricted for Debt Service. $5$C$.$ Part $3.$ New Debt Service Fund TransactionsOn the advice of the city attorney, a City Jail Debt Service Fund is opened to account for debt service transactions related to the bond issue sold on January $1,2020($see Part $1).$Required:a$.$ Open a general journal for the City Jail Debt Service Fund. Record the following transactions, as necessary. Control accounts are not necessary$(1)$ The premium described in transaction $1$ of Part $1$ was received as a transfer from the capital projects fund.$(2)$ Cash in the amount of $$160,000$ was received from the General Fund on June $30$ and was transferred to the fiscal agent.$(3)$ The fiscal agent reported that checks dated July $1$ had been mailed to bondholders for interest due that day.$(4)$ The transfer of the unexpended funds from the capital project fund $($described in part c of Part $1)$ was received.$(5)$ Cash in the amount of $$360,000$ was received from the General Fund on December $31$ and transferred to the fiscal agent to be used for interest and principal payments due on January $1($next fiscal year$).$ The government elected to not accrue the interest at year$-$end.$(6)$ $ $200,000$ of the remaining cash on hand was invested. b$.$ Post the entries to the City Jail Debt Service Fund ledger $($t$-$accounts$).$c$.$ Prepare and post an entry closing all nominal accounts to Fund Balance. Assume any remaining net resources are classified as Fund Balance Restricted for Debt Service$\mathrm{.}5$C$.$ Part $4.$ Governmental Funds Financial StatementsRequired: a$.$ Prepare a Balance Sheet for the governmental funds for the City of Monroe as of December $31,2020.$ Include the General Fund, the Street and Highway Fund $($P$4$C$),$ the City Hall Debt Service Fund, and the City Jail Debt Service Fund. Use the balances computed in $4-$C for the General Fund and special revenue fund portions of this statement.b$.$ Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balances for the governmental funds for the City of Monroe for the Year Ended December $31,2020.$ Include the same funds as listed in requirement a plus the City Jail Construction Fund.