5-C. Part 1. Capital Projects Fund Transactions The 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. The bond issue requires principal payments of $200,000 due annually over a 20-year period commencing January 1, 2025. Interest payment dates are July 1 and January 1. Required: a. Since this is a new project, there are no beginning balances in the capital projects fund. Record the following transactions and post to the general ledger. Control accounts are not necessary. 1 On January 1, 2024, the bonds bearing an interest rate of 8 percent were sold at a $200,000 premium. The first interest payment will be July 1, 2024. The premium was transferred to the City Jail Debt Service Fund for the future payment of principal on the bonds. The receivable from the state government was recorded. . Legal and engineering fees early in the project were paid in the amount of $120,000. This amount had not been previously encumbered.. . The city signed a contract with local architects at an agreed upon fee of $250,000 to be paid as work is completed. Preliminary plans were approved, and the architects were paid $50,000 (20 percent of the fee). The complete plans and specifications were received from the architects and approved. After receiving an invoice, $175,000 of the original contract was approved and paid to the architects. 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. The contract requires periodic payments. An invoice of $1,350,000 is received and the invoice amount was approved and entered into accounts payable with the exception of a 10 percent retainage. (Use a separate liability \"Contract payable\" for the portion held back.) 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 previously recorded in accounts 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 (previously ordered) were received at a total actual installed cost of $459,300. Invoices were approved for payment. 14. The remainder of the architects' fees ($25,000) was approved for payment. 15. The City Jail Construction Fund paid all outstanding accounts payables ($484,300) on December 31, 2024. 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 an entry closing all nominal accounts to Fund Balance and post entries into the appropriate T-accounts. 5-C. Part 2. Existing Debt Service Fund Transactions The 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, 2023, 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. The City Hall Debt Service Fund began the year with the following account balances (Account balances as of January 1, 2024): Cash @ Liabilities 0 Cash with Fiscal Agent 580,000 Fund Balance 580,000 Totals 580,000 580,000 (Cash was provided in 2023 for the bond principal and interest due on January 1, 2024. The government chose not to accrue interest payable last year.) a. Beginning balances appear in the general journal for the City Hall Debt Service Fund. 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 electronically transmitted 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 electronically transmitted 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 at year-end. b. Post the entries to the City Hall Debt Service Fund ledger (t-accounts). c. Prepare 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 Transactions On 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, 2024 (see Part 1). Required: a. Since this is a new bond issue, there are no beginning balances in 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 electronically transmitted 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 Iltem 16 of Part 1) was received. 5. Cash in the amount of $360,000 was received from the General Fund on December 31 and electronically transmitted 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 in US government securities. 3. Post the entries to the City Jail Debt Service Fund ledger (t-accounts). t. Prepare 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 4. Governmental Funds Financial Statements Required: 3. Prepare a Balance Sheet for the governmental funds for the City of Monroe as of December 31, 2024. Amounts for the General and special revenue fund appear in the first two columns of the template. 3. 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, 2024