On 9/1/18 Birmingham County created a CPF to build a new library. Required: Prepare the journal entries required in the Capital Projects Fund for the above transactions. 20 points

Birmingham Co. sold bonds at par value in the amount of $10,000,000 to finance construction of a new library. Cash was debited and Proceeds bond sale is credited.

On 10/10/18 Hills County entered into a contract with a private contractor to build a new library building in the amount of $10,000,000.

On 12/1/18, when the contract was half finished, the contractor submitted a bill for $5,000,000. The bill was paid on 12/15/18 less Hills' standard 5% retention to assure any construction deficiencies are corrected.

The books were closed out. The Proceeds from the sale, expenditures and encumbrances were closed to FB.