During FY 2017, the voters of Surprise County approved construction of a $22 million police facility and an $12 million fire station to accommodate the countys population growth. The construction will be financed by tax-supported bonds in the amount of $30 million, a $2 million economic stimulus grant, and a portion of future use tax revenues. During 2017, the following events and transactions occurred.

Required

a.

Prepare journal entries to record the the following transactions in a single Surprise County Construction Fund and governmental activities general journal at the government-wide level. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in whole dollar amounts and not in millions.)

Transaction	Fund	General Journal	Debit	Credit
1. Issued $130,000 of 6 percent bond anticipation notes to cover preliminary planning and engineering expenses.
1	Construction Fund
	Governmental Activities
2. Incurred architecture and engineering costs in the amount of $63,000. They were split evenly between the two projects.
2	Construction Fund
	Governmental Activities
3. Entered into a construction contract for $34 million$22 million was for the police facility and $12 million was related to the fire station.
3	Construction Fund
	Governmental Activities
4. Issued the $30 million, 20-year 8% bonds at 101. (The premium should be recorded in a debt service fund. You do not need to record this entry.)
4	Construction Fund
	Governmental Activities
5. Paid off the bond anticipation notes that had been outstanding 180 days. (Interest is an expenditure of the capital projects fund.) Assume 360 days in a year.
5	Construction Fund
	Governmental Activities
6. An invoice for $17 million was received from the contractor for a portion of police facility construction ($10 million) and fire station construction ($7 million).
6a	Construction Fund	Record the appropriation of funds towards completed portion of the police facility and the fire station.
6b		Record the construction Work-in-progress of the police facility and the fire station in the capital project fund.
6c	Governmental Activities	Record the construction Work-in-progress of the police facility and the fire station.
7. Half of the grant funds were received in cash. The remainder is anticipated in 2018; however, the grantor notified the county that there is no guarantee that the federal government will appropriate the 2018 portion.
7	Construction Fund
	Governmental Activities
8. The initial construction invoice, less 5% retainage, was paid.
8	Construction Fund
	Governmental Activities
9. The fire station was completed, and a final invoice for the remaining $5 million was received. All fire station construction charges incurred can be capitalized as buildings.
9a	Construction Fund	Record the appropriation of funds towards completion the fire station.
9b		Record the completion of the fire station construction contract.
9c	Governmental Activities	Record the appropriation of funds towards completion the fire station.
9d		Record the completion of the fire station construction contract.
10. Following inspection, the fire station invoices were paid in full.
10	Construction Fund
	Governmental Activities
11. At year-end, the contractor billed the county an additional $7 million for the police facility; however, the police facility was incomplete.
11a	Construction Fund	Record the appropriation of funds towards the police facility.
11b		Record the police facility construction work-in-progress.
11c	Governmental Activities	Record the police facility construction work-in-progress.
12. Temporary accounts were closed at year-end. Assume that the fund balances are all restricted.
12	Construction Fund
	Governmental Activities