(Journal entries for a Capital Projects Fund) The City of West Hutchison is constructing a new road, which it estimates will cost $7.2 million. The city will finance the road with an expenditure-driven state construction grant of $1.2 million and a bond issuance of $6 million. Prepare joumal entries to record the following transactions and events for the city's Capital Projects Fund during calendar year 2022. No budgetary entries other than encumbrances should be recorded. 1. 'The city receives $6.2 million from the bond issuance. 'The face amount of the bonds is $6 million. 2. The city signs a contract with the lowest bidder, Mary Michel Construction, to build the road at a| cost of $7.2 million