Practical problems of ACCOUNTING FUNDS 1. Capital Project Funds Helearned that the city of Valle Verde Puerto Rico established a Capital Project Fund to account for the construction of a building to attend medicalemergencies. / the estimated cost is $ 700,000. The project will be financed through a serial bond issue for $6,00,000, sellingtwo to 101. The bonds mature in 6 years and will be paid in equal amounts of $100,000 on December 31of eachyear. Interest of 8%per annum shall be paid each semester. July 1 and December 31. In addition, you will receive a transfer from the General Fund of$3,2,000 and a "Grant" from the Federal Government of $100,000. The premium is transferred to the Debt Service Fund. Prepare the daily entries to record the following transactions: A: Record bond issuance and premium b. transfer the premium to the Debt Service Fund c. Record the transfer of the GF d. Record receipt of cash received from the GF and. Register the receipt of the Federal Grant 1. A contract was issued for the construction of the building for $6,40,000 8. The project is completed and the "encumbrance" is revoked h. Construction costs increased to $6,50,000due to additions to the contract. It indicates that 10% will be retained until the project is fully accepted. 1. The CPF paid the sum of$5,95,000 for the contract. 1. Prepare the Pre-Closing Trial Balance Sheet of this Capital Project Fund