Advanced Accounting II Chapter 18 Accounting for State and Local Governmental Units Problem 1. The following transactions take place: 1. On January 1, the city issued 9% general obligation bonds with a face value of $4,000,000 payable in 10 years to finance the construction of city offices. Total proceeds were $4,500,000. 2. On December 20, construction was completed and occupancy taken of the city offices. The full cost of $3,900,000 was paid to the contractor, and appropriate closing entries were made with regard to the project. 3. The General Fund repaid the Special Revenue Fund a loan of $15.000 plus $900 in interest on the loan. Instructions: Prepare entries in general journal form to record these transactions in the proper fund(s). Designate the fund in which each entry is recorded