Journal entries and financial statements-Capital Projects Fund The flowing transactions occurred during 202 1: The Cry of Watersville approved the construction ut an enclosed concert area for a total cost of $78,250,000 in order to attract professional events On the same day, a coast with a 6 percent retamage taupe was signed with v. Construction Comparty for the arena The arena w be financed by a $78250.000 general obligation bond issue investment revenue of $4,200.000 was also included in me budget (Assume that the budget is recorded in the accounts and encumbrance accounting is used) 2. Watersville received $79,800.000 from the sale of tionds, which included a premium of $1,050,000 over the $78,750,000 face value The $1,050 000 premium was transferred immediately to the appropriate Debt Service Fund 3. The cry invested $780-45,000 is securities The contract signed with VP stipulated that the contract price included the architect fees. The architects were paid their fee of $76,250 by Watersville (Assume that a vouchers payable account was not used) The contractor submitted a progress billing of $3,150.000 the billing (less a &percent retainage) was approved Investments that cost $3,150,000 were redeemed for $3,150,000 plus $52,500 interest 7.VP was paid the amount due in transaction 5 fess the retainage Interest income totaling $1.885,000 was received on the investments SVP submitted another progress billing of $8,100 000. The billing less the retainage was approved. 10 nvestments orginally costing $5,190,000 were redeemed to make the payment to VP Cash proceeds of $8.505 000 were received 11. The contractor was paid the amount due in transaction 9 less the retainage 12. Interest income of $63,000 was accrued. 13 interest income of $10.500 was received in-cash Use the preceding information to do the following Prepare the journal entries necessary to record these transactions in the Capital Projects Fund Assume that the city operates on a calendar year b. Prepare a tria! balance for the Capital Projects Fund as of December 31, 2021, before closing Prepare any necessary closing entries. The debt covenant for the general obligation bonds states that the bond proceeds and any earnings from investing the proceeds must be used for the construction of the arena If any unused bond proceeds or related investment earnings remain at completion of the project, they will be transferred to the Debt Service Fund d Prepare a statement of revenues, expenditures, and changes in fund balance for 2021 and a balance sheet as of December 31, 2021 Prepare the journal entries necessary to record the remainder of the budget and to reestablish the budgetary accounts for encumbrances on January 1, 2022 Assume that investment revenue expected to be earned in 2022 is $2,100,000