East Whiteland Township uses the calendar year. It decides to extend sewer lines to a recently developed subdivision. The township estimates the cost will be $9.0 million. The project is to be funded first with the issuance of $6.0 million in special assessment bonds; second with a $2.0 million reimbursement grant from the state; and finally with a $1.0 million pledge (contribution) from a local construction company to cover any additional expenses. The agreement with the state is that it will award the reimbursement grant to East Whiteland Township only after $6.0 million is spent. During 2022, East Whiteland Township engages in the following transactions, all of which are recorded in a capital projects fund. 1. It issues $6.0 million in bonds at a premium of $.40 million and incurs $.13 million in issue costs. The premium, net of issue costs, is transferred to a newly established debt service fund. 2. It receives $2.0 million in cash from the state for the reimbursement grant in anticipation that the township will incur at least $2.0 million in construction costs. 3. It invests $6.6 million in short-term (less than one year) securities. 4. It issues purchase orders and signs construction contracts for $8.7 million. 5. It sells $4.0 million of its investments for $4.1 million. 6. It receives invoices totaling $7.4 million. As permitted by its agreement with its prime contractor, the township retains $.5 million pending satisfactory completion of the project. The township pays $6.9 million. 7. It recognizes the revenue earned from the reimbursement grant. 8. It receives the contribution from the local construction company as follows: $700,000 in 2022; $100,000 in January, 2023; $100,000 in February, 2023; and $100,000 in March, 2023. 9. By year-end, the investments still on hand increased in value by $.15 million. Do a. Prepare journal entries to record the transactions in 2022, excluding closing entries. b. Prepare the Statement of Revenues, Expenditures, and Changes in Fund Balance for the year ending December 31, 2022. Also, prepare the Balance Sheet at December 31, 2022.