Louisville has a Capital Projects Fund for its courthouse renovations. The appropriation authority for the fund continues until the end of the project. The voters approved a bond issue for the specific purpose of financing courthouse renovations and the county commissioners committed a revenue source specifically for that purpose. The expected revenues sources are as follows:

City Reserves, Transfer from General Fund..... $500,000

Bond proceeds $6,000,000

State Grant (Outright contribution to the project).. $700,000

Federal Grant (20% of cost, up to $1,800,000 $1,800,000

Total Resources $9,000,00

Transactions:

1. The state grant and federal grant were received. Be careful about the conditions on each of the grants.
2. Bought land for the project paying ($50,000). (2 journal entries)
3. Money from the bonds was received (par less $15,000 of bond issue costs).
4. The Funding from the General Fund was received.
5. During the year, the city paid the architect fees of $600,000. (2 entries)
6. The contract to the Rodriguez Construction was signed and work began on the park. The contract was for the following amount:

Structure: $4,700,000

Plumbing and heating: 1,825,000

Electrical: 1,300,000

7. Invoices were received and vouchered for the following amounts of the Rodriguez contract. There was a 5% retainage on the contract. (3 entries).

Structure: $4,750,000

Plumbing and Heating: 1,825,000

Electrical: 1,250,000

Landscaping (not encumbered): 450,000

8. The Rodriguez Construction voucher was paid.
9. The new park and its facilities were approved by the inspectors and accepted by Sacramento. It was ordered that
   1. the retained percentage be paid to the contractor;
   2. the Federal government be repaid (2 entries);
   3. the remaining cash be transferred to the Debt Service Fund;
   4. the Capital fund be terminated (closing entry: Revenues, Expenditures, transfers in and transfers out).