prepare the journal entries and closing entries recording the events 1-8 for the capital projects and debt service funds.

5-13. The state government established a capital project fund in 2016 to build new highvays. The fund is supported by a 5 percent tax on diesel fuel sales in the - state. The tax is collected by private gas stations and remitted in the following month to the State. The following transactions occurred during 2017: 1. $2,100,000 of encumbrances outstanding at December 31,2016 , were re-established. 2. During the year, fuel taxes were remitted to the State totaling $23,600,000, including the amount due at the end of the previous year. In addition, $2,900,000 is expected to be remitted in January of next year for fuel sales in December 2017. p. 122 . The State awarded new contracts for road construction totaling $23,650,000. 22. During the year, contractors submitted invoices for payment totaling $24,005,000. These were all under the terms of contracts (i.e., same \$ amounts) issued by the State. 5. The State made payments on outstanding accounts of $23,375,000. The state government operates a debt service fund to service outstanding general obligation bonds. The following transactions occurred during 2017: 6. The state General Fund provided cash of $4,800,000 through transfer to the debt service fund. 7. Payments for matured interest totaled $2,985,000 and payments for matured principal totaled $1,850,000 during the year. 8. In December, the State refunded bonds to obtain a better interest rate. New bonds were issued providing proceeds of $20,000,000, which was immediately used to retire outstanding bonds in the same amount