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7. In 2018, City 'E' began work to improve certain streets to be financed by a bond issue and supplemented by a federal grant. Estimated

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7. In 2018, City 'E' began work to improve certain streets to be financed by a bond issue and supplemented by a federal grant. Estimated total cost of the project was OMR 8,000,000; OMR 5,000,000 was to come from the bond issue, and the balance from the federal grant. The capital projects fund to account for the project was designated as the Street Improvement Fund. The following transactions occurred in 2018: 1. Issued OMR 200,000 of 3 percent bond anticipation notes to be repaid from the proceeds of bonds in 360 days. 2. The federal grant was recorded as a receivable; half of the grant is to be paid to City 'E' in 2018 and the remainder late in 2019. The grantor specifies that the portion to be received in 2019 is not available for use until 2019 because there is no guarantee that the federal government will appropriate the 2019 portion. 3. A contract was let to Beta Construction Company for the major part of the project on a bid of OMR 5,400,000 4. An invoice received from the city's Stores and Services Fund for supplies provided to the Street Improvement Fund in the amount of OMR 120,000 was paid. (This amount had not been encumbered.) 5. Preliminary planning and engineering costs of OMR 138,000 were paid to the Taheer Engineering Company. (This cost had not been encumbered.) 6. A voucher payable was recorded for an OMR 37,000 billing from the local telephone company for the cost of moving some of its underground properties necessitated by the street project. 7. An invoice in the amount of OMR 2,000,000 was received from Beta for progress to date on the project. The invoice was consistent with the terms of the contract, and a liability was recorded in the amount of OMR 2,000,000 Required: Prepare journal entries to record the preceding information in the general ledger accounts for the Street improvement Fund. (You may ignore the entries that would also be required in the governmental activities general journal at the government-wide level.)

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