P6-1 (Journal entries and financial statementsCapital Projects Fund) The following transactions occurred during 2012: 1. The City of Watersville approved the construction of an enclosed concert arena for a total cost of $75,000,000 in order to attract professional events. On the same day, a contract with a 6 percent retainage clause was signed with V.P. Construction Company for the arena. The arena will be financed by a $75,000,000 general obligation bond issue. Investment revenue of $4,000,000 was also included in the budget. (Assume that the budget is recorded in the accounts and encumbrance accounting is used.