Prepare entries to record the following transactions related to the construction of a building by the Village of Silver Springs. The Village adopts a formal budget and uses encumbrance accounting. Make all required entries for the Capital Projects Fund only.

a. The Village Council adopts a capital budget at the beginning of the year. To finance construction of the building, the Village will transfer $3,000,000 from its General Fund and apply for a state grant of $1,000,000. It appropriates $3.6 million for construction and '$400,000 for furniture and equipment.

b. The General Fund transfers $3,000,000 to the Capital Projects Fund for the new project

c. The state approves Silver Springs' application for a $1,000,000 construction grant and simultaneously sends a check to the Village.

d. Silver Springs awards a construction contract in the amount of $3,400,000.

e. The contractor sends a progress billing to Silver Springs in the amount of $1,600,000. The bill is approved by the Village engineers and a voucher is prepared, less a 10% retainage pending completion of the building and final approval by the Village. Silver Spring considers 25% of the billing to be the state's share of the cost.

f. The voucher in "e" above is paid.

g. The contractor encounters construction problems due to unforeseen soil conditions. As a result, Silver Springs authorizes a change order for '$200,000

h. The contractor completes construction and sends Silver Springs an invoice for the remaining $2,000,000. The Village engineers inspect the building and accept the work. The invoice is approved and paid, together with the amount retained on the progress billing in "e" above. Silver Springs considers 25% of the billing to be the state's share of the cost.