Prepare journal entries for the following related transactions in the fund and activity journals affected: (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

1. A capital projects fund issued $5,000,000, 4 percent bonds for $5,050,000 to finance improvements of a park. Premiums received are to be used to service the debt issue.
2. The Parks and Recreation Special Revenue Fund transferred $250,000 for use in construction.
3. A construction contract was awarded in the amount of $5,200,000.
4. A bill was received from the contractor for $2,600,000.
5. The contractors bill is paid, and 5% retainage is withheld.
6. The park renovations were completed and the final bill of $2,600,000 was received. The contractors bill and retainages are approved for payment in full. Total construction expenditures were allocated as follows: $5,000,000 to building, and the remainder to equipment.
7. The capital projects fund temporary accounts were closed, and the capital projects fund was closed by transferring remaining funds to the debt service fund for use in debt repayment.

List of Accounts:

• No Journal Entry Required
• Bonds Payable
• Cash
• Construction Expenditures
• Construction Work in Progress
• Contracts Payable
• Contracts PayableRetained Percentage
• Encumbrances
• Encumbrances Outstanding
• Equipment
• Fund BalanceRestricted or Assigned
• Other Financing SourcesBond Premium
• Other Financing SourcesInterfund Transfers In
• Other Financing SourcesInterfund Transfers Out
• Other Financing SourcesProceeds of Bonds
• Other Financing UsesInterfund Transfers Out
• Park Building
• Premium on Bonds Payable

Journal entries

1.Record the issue of 4 percent bonds in the Capital Projects fund.

2.Record the issue of 4 percent bonds in the governmental Activities fund.

3.Record the issue of 4 percent bonds in the Debt service fund.

4.Record the receipt from the Parks and Recreation Special Revenue for use in construction in the capital projects fund.

5.Record the payment to the capital projects fund for use in construction in the Special Revenue fund.

6.Record the award of the construction contract in the capital projects fund.

7.Record the bill received from the contractor in the capital projects fund.

8.Record the adjustment to the encumbrances outstanding in the capital projects fund.

9.Record the bill received from the contractor in the Governmental activities.

10.Record the 5% retainage withheld in the Capital Projects and Governmental Funds.

11.Record the final bill received from the contractor in the capital projects fund.

12.Record the adjustment to the encumbrances outstanding in the capital projects fund.

13.Record the payment of the bill and the retainage in the Capital Projects Fund.

14.Record the final bill received from the contractor in the Governmental activities journal.

15.Record the payment of the bill and the retainage in the governmental activities journal.

16.Record the construction completion in the governmental activities fund.

17.Record the entry to close nominal accounts in the capital projects fund.

18.Record the entry to transfer the balance in the capital projects fund.

19.Record the entry to close the capital projects fund.

20.Record the receipt on the closure of the capital projects fund in the Debt Service Fund.