P2-3 (Transaction Analysis) Analyze each of the following transactions and events. (1) Indicate all of the effects of each transaction on each of the funds and the nonfund accounts of a local government. Be sure to indicate the fund(s) affected. Include analysis of any year-end adjust- ments that are required. Assume that December 31 is the end of the fiscal year. (2) Indicate how each of the transactions, events, or related adjustments should be reported in the operating state- ment of each fund affected by each transaction. 1. The government issued $4,000,000 of 6%, 10-year bonds at 100 on July 15, 20X3. Interest is payable semiannually on January 15 and July 15 of each year. The bonds were issued to finance construction of a major addition to the government's primary office building.