Please prepare the Statement of Revenues, Expenditures and Changes in Fund Balance and Fund Balance Sheet.

EX$.6-4$

Capital projects funds account for construction expenditures, not for the assets that are being constructed.

The Wickliffe City Council authorizes the restoration of the city library. The project is to be funded by the issuance of bonds, a reimbursement grant from the state, and property

taxes.

Prepare journal entries in the capital projects fund to reflect the following events and transactions:

a$.$ The city approves $($and gives accounting recognition to$)$ the project's budget of $$9,027,000,$ of which $$6,000,000$ is to be funded by general obligation bonds, $$2,500,000$

from the state, and the remaining $$527,000$ from the general fund. The city estimates that construction costs will be $$8,907,000$ and bond issue costs $$120,000.$

b$.$ The city issues $9$ percent, $15-$year bonds that have a face value of $$6,000,000.$ The bonds are sold for $$6,120,000,$ an amount reflecting a price of $$102.$ The city incurs

$$115,000$ in issue costs; hence, the net proceeds are $$6,005,000.$

c$.$ The city transfers the net premium of $$5,000$ to its debt service fund.

d$.$ It receives the anticipated $$2,500,000$ from the state and transfers $$527,000$ from the general fund.

e$.$ It signs an agreement with a contractor for $$8,890,000.$

f$.$ It pays the contractor $$8,890,000$ upon completion of the project.

g$.$ It transfers the remaining cash to the debt service fund.

All I need is the financial statement.