EX. 7-5 Capital assets are accounted for in governmental fund statements on a modified accrual basis. Refer to the transactions in the previous exercise. 1. Prepare journal entries that the city would make in its governmental funds (e.g., its general fund or a capital projects fund). 2. How would you recommend that the city maintain accounting control over the capital assets themselvesthose you did not record as assets in the governmental funds?